Of course, that is not the title of any piece of legislation, pending or passed. In Obama’s budget proposal, presented the other day, tax rates are raised for the mostly hard-earned (and previously taxed) assets of dead people. In addition, several planning techniques are attacked that will make planning a bit more difficult.
But the truth is, just like during earlier times of even higher estate tax rates, those wealthy families who are willing to pay attorneys and accountants to plan appropriately will substantially mitigate or even avoid the estate tax. Those estates that will actually get socked with the higher rates are those where the dead person was not willing to pay to plan.
Another bone to pick here is that FOB (friend of Barack) Warren Buffett (whose estate will pay zero estate tax) owns several life insurance companies. One of the most common ways to fund large estate tax bills is to buy loads of life insurance. FOB Warren is getting rewarded for his support.
Here is an article from Forbes that goes through the details of the proposal. I don’t agree with including “Wealth Advisors” in the title since those advisors will make more money by designing and implementing new estate plans to mitigate the increased tax burden.