Yes, the Federal Estate Tax has turned 100. In 1916, the members of congress voted in the Revenue Act of 1916. This introduced the modern-day income tax and also included what is known today as the Federal Estate Tax. For 2016, that tax carries an exemption of $5,450,000 per individual. Over the years, there have been many changes to the U.S. estate tax and in fact, many candidates for Congress and the President of the United Sates have actually asked for a complete repeal of the estate tax.
Andrew Mellon, who was at one time Treasury Secretary, believed that the estate tax would hurt our economy and was a strong advocate for complete repeal of the estate tax. With the higher exemption, fewer Americans now find themselves subject to the estate tax upon their demise. However those who are fortunate to have an estate in excess of the exemption are still asking that the tax be repealed or at least lowered as they feel it is not a justified revenue source. Congress has not been keen on the complete repeal of the tax but it appears that this years presidential candidates favor lowering the exemption. Decisions of this magnitude will mostly not be known until the elections are over and our new president is in office.
About Morris Hall, PLLC:
At Morris Hall, PLLC we have focused our legal practice on estate planning for over 45 years. Along with estate planning, our attorneys help clients and their families with matters of probate, trust administration, wills, power of attorneys, business planning, succession planning, legacy planning, charitable gifting and other important legal aspects. We also have divisions in financial, real estate and accounting to help you incorporate all of your planning together, ensuring that everything works perfectly for your needs and situation. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Carefree, Tucson, Oro Valley, Green Valley, Prescott, Sedona, Flagstaff and Arrowhead. Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.