Farm business advisors are pleased that the federal estate tax law is now permanent.
Nebraska Farm Business director Tina Barrett says having that certainty will make it easier to do estate planning.
“There’s no expiration date on it,” Barrett says. “A lot of times, what we’ve dealt with in the last couple years, is that we got a two-year extension and then it expires—and they have to act in order to change it.
“Well, this is a ‘forever’ law, until they change it. So it’s going to take an act of Congress to change it—which is a much bigger difference and a much better planning tool for what we’ve got to deal with.”
The new law left the estate tax exemption at $5 million per person and $10 million per couple. However, the tax rate increased from 35 to 40 percent.