HOWLAND Speaker discusses estate tax repeal

Estate tax relief is on its way, at least for a while, officials say.
By AMANDA C. DAVIS
VINDICATOR TRUMBULL STAFF
HOWLAND -- Estate tax law is a lot like sausage.
You don't want to see how either is made.
That's what Christopher Bray told a roomful of attorneys and law clerks last week at Leo's Ristorante during the 21st annual probate practice seminar for continuing education credits.
Bray is senior vice president and national director of estate and succession planning for Sterling, a Pepper Pike investment firm and a division of National City Bank.
Phasing out: He discussed the gradual phasing out of the federal estate tax law through 2010, when it will be repealed, at least for a year.
The law disappears by Jan. 1, 2011 unless it is made permanent by a future Congress or president.
Some federal lawmakers are working on legislation to prevent the estate tax from reappearing after 2010.
Bray said the legislation is good because previously unavailable tax savings will now be available. It's also bad, he said, because it makes estate planning difficult and phases in relief.
For instance, if someone dies in 2002 with $1 million or less in assets, he or she won't have to pay federal estate taxes.
By 2004, those with $1.5 million or less in assets won't have to pay.
That figure jumps to $3.5 million in 2009.
Right now in Ohio, those who have $200,000 or less in assets don't have to pay Ohio estate taxes. In 2002, those who have assets of $338,000 or less won't have to pay.
Would be nice: Cortland Atty. George Gessner said he would like to see estate taxes eventually disappear.
"But taxes have a way of coming back or never really completely going away," he said.
Changes in tax laws are difficult to understand unless you're an attorney, he said, adding "The general public is perplexed about it."
And rightfully so, says Bray, who says confusion could be compounded if the economy does not recover soon and estates continue to depreciate in value.
The New York Times has reported that the elimination of the state death tax credit will have a devastating impact on state budgets.
Bray quoted the paper as saying states are scrambling to plan for the potential loss of $50 billion to $100 billion over 10 years from the repeal of the estate tax.
davis@vindy.com