Estate Planning & Trusts - What's New
Death Tax Repeal Permanency Bill of 2003
On June 18, the House of Representatives approved the Death Tax Repeal Permanency Bill of 2003 (HR 8) by a margin of 264 to 163. The bill now goes to the Senate, where it’s future is uncertain. It’s not known whether Republicans can garner the 60 votes needed to the bill; predictions for when the bill will be addressed range from this summer to early next year.
Economic Growth and Tax Relief Reconciliation Act of 2001
Currently, the Economic Growth and Tax Relief Reconciliation Act of 2001 is scheduled to “sunset” in 2010 provision. HR 8 would make the cuts permanent.
The House rejected a less expensive alternative that would have increased the estate tax exclusion to $3 million for individuals and $6 million for married couples, beginning in 2004. Democrats introduced the alternative citing growing concerns about the federal deficit. However, President Bush called the House vote to eliminate the estate tax "a victory for fairness, job creation and certainty for family businesses, farmers and ranchers." The president stated that making the estate tax repeal permanent is "an important step toward increasing fairness in the tax code and promoting economic security."
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