Monday, May 7, 2012

Unified Credit Per Obama Proposed Budget

For those looking for some clarity on the future of estate taxes, the Obama Administration has proposed a unified credit of $3.5 million and an estate tax rate of 45%.  Though this has the same likelihood of passing as the Paycheck Fairness Act and the Buffett Rule (re: nil) and would require the Senate to pass a budget for the first time in 1,000 days, it is illuminating for two reasons.

First, it indicates that unified credit will not revert to $1 million as currently slated.

Second, it amplifies the exigency of making a large gift this year for those who can afford to give away $5 million.