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Archive for December, 2010

Merry Christmas! 12.21.2010

From all our attorneys and staff at our Battle Ground and Snoqualmie offices, “Merry Christmas.” We hope you all have a peaceful holiday season and look forward to working with you in 2011.

Senate Passes Tax Cut Deal – UPDATE 12.15.2010

The Senate approved to extend the Bush-era tax cuts, voting 81 to 19 today in favor of the tax cut package. The estate tax, which would have exempted up to $1 million of inheritances and then taxed any amounts above $1 million at a 55% rate, would now exempt up to $5 million per individual and then tax at a rate of 35%. The measure now moves to the House of Representatives.

This measure would be a positive result for many of our small business and individual clients. Whether or not the House of Representatives will take swift action remains to be seen. More than two dozen moderate House Democrats submitted a letter to House leadership yesterday calling for the House to pass the bill as is to ensure that President Obama can sign the measure into law before the end of the year.

Stay tuned . . .

Estate Tax Changes – UPDATE 12.10.2010

With Congress inching closer to finalizing a last minute deal that would extend the Bush-era tax cuts that expire at the end of this month, it looks as though the federal exemption level for estate taxes might return to the $3.5 million-per-individual levels last seen in 2009. While there is no guarantee that this deal will finalize before the end of the month, there is more hope than ever that some sort of an deal will be worked out so that we don’t see a return to the $1.0 million-per-individual level of 2001.

The extension of the Bush-era plan would be welcome news to most of our clients. Stay tuned over the next few weeks for more information on this issue. As always, if you have any questions regarding how federal tax limits might affect your estate plan, please give us a call at either our Battle Ground or Snoqualmie office. We are always happy to answer your estate planning questions – even if Congress can’t make up its mind!