The year 2010 is a critical year for anyone with an Estate Plan. The potential changes in the law and the uncertainty of the outcome make planning for the future especially difficult. According to the Economic Growth and Tax Relief Reconciliation Act of 2001, the estate tax is repealed in 2010 with a sunset provision that brings it back in 2011 the same as it was prior to 2001. There has been much talk about the permanent repeal of the tax or a permanent reduction in the rates, but with government spending at an all time high, many experts believe that these scenarios are unlikely. A recent article on the Financial Advisor Magazine website outlines some of the changes being discussed on Capitol Hill in order to raise more revenues for the federal government. Many of the proposed changes will limit or eliminate current tax incentives used for estate planning purposes.

Be sure to talk with your estate planner and tax counsel regarding these issues and how they might affect your current estate plan.

For a more detailed explanation of the estate tax law changes, visit this article at Moneywatch.com.

Puritan Financial Companies is a diversified financial services firm specializing in helping people from their peak earning years through retirement to secure their financial future. Visit Puritan Life Insurance at www.puritanlife.com. The information contained in this blog post is for informational purposes only and should not be construed as legal, tax, or investment advice.