House Speaker John Boehner (R-OH) said in an interview yesterday that he wants the current estate tax law extended for one year. President Obama is opposed to extending the so-called Bush tax cuts. If Congress and the President do not take action, the estate tax will come back at its pre-2011 tax cut level in 2013 – up to 50% tax on any estate over $1 million. Such a move would not only cause confusion and uncertainty for estate planning professionals and their clients, it would also have economic consequences, including plunging America back into a recession, according to the Congressional Budget Office. As we get closer to 2013 and this fall’s election, expect lots of discussion from Washington, D.C. regarding taxes.

In the meantime, married couples can give up to $10.24 million in gifts to family members and friends this year and leave a combined $10.24 million estate without paying federal estate or gift taxes. If our firm, Johnson Law KC LLC, can help you with your estate planning needs, please email (steve@johnsonlawkc.com) or call (913-707-9220) us for a convenient appointment and free half hour consultation.

(c) 2012, Stephen M. Johnson, Esq.