Houston gas mogul, Dan Duncan, was the 74th richest person in the world when he died last month. His $9 Billion estate might have meant upwards of $4 Billion for the IRS, however, with no federal estate tax imposed this year, they get nothing.
This scenario, some believe, could encourage lawmakers to push to retroactively impose an estate tax. Others say that doing so would result in mayhem – law suits and headaches that could last for years.
If no action is taken, the estate tax will reset in 2011 with an exemption of $1 million and a maximum rate of 50%. Of course, we’ll be watching closely and reporting on any changes.