Attorney Jonathan G. Blattmachr and  Scott A. Nammacher have written an article in which they examine HR 436, a bill introduced by Representative Earl Pomeroy (D. North Dakota).  This bill  “would have significant impact on the value of interests in real estate, investment holding and possibly operating entities, for estate and gift tax purposes. This echoes proposals made during the Clinton Administration. Certain aspects of the proposed bill seem to be difficult to discern and further refinements and debate are surely going to come if it moves forward in committee. But, if enacted, it or similar bills, will likely will change the valuation of these kinds of “property,” in many cases.”

Tax Analysts:  “In less than 100 days, the estate tax goes on hiatus for a year.  The buzz in Washington, as well as within the trusts and estate bar, is about three possible options for Congress.”

On September 11, 2009, I attended an all day seminar on estate planning put on by the Arizona Wealthcounsel users group of which I am a member.  Each member of the group was asked for an opinion (guess) about when and what Congress will do to the estate tax exemption amount.  The guesses varied widely.

I said I thought that late in 2010, Congress will pass a law that is retroactive to January 1, 2010, that taxes the estates of people who die in 2010 with estates exceeding $1,000,000 and that the $1,000,000 exemption amount scheduled to begin in 2011 will become permanent.

TheHill.com has a story today that contains guesses from members of Congress with respect to what Congress will do with the estate tax.

A split among Democrats and a busy fall agenda is likely to have lawmakers hold off this year on debating the future of the estate tax, even though it expires at the end of the year. Experts and aides say a more realistic scenario involves Congress passing a one-year extension and then tackling the issue as part of broader tax reform next year. The estate tax hits people who inherit high-value property after a death, and Democrats are keen on avoiding the loss of much-needed revenue when it expires.