With the 2012 Presidential election just around the corner, many questions concerning Mitt Romney’s policies are being discussed. One of those of issues is the estate tax provisions that are set to expire on December 31, 2012. Under the existing law, the estate tax exemption will decrease to $1 million on January 1, 2013, from the current $5 million for 2012.
Mitt Romney has said that he would eliminate the estate tax all together. Obviously, President Romney would have to work with Congress to pass legislation eliminating the estate tax, but Romney’s proposal of eliminating the estate tax completely is one that resonates with many business owners who risk losing portions of their business to estate taxes when the older generation of a family dies and leaves the business to a younger generation.
Because it might be tough to convince both houses of Congress to eliminate the estate tax completely, Romney, if elected, would likely push to keep the current exemption amount at $5,000,000, or even increase the exemption amount. Additionally, Romney would likely keep the estate tax rate at 35 percent, or possibly lower to the rate.
If you have questions concerning the estate tax, feel free to contact Ford + Mathiason LLP and schedule a consultation to discuss your estate planning options.