The Obama administration has proposed in its 2011 federal budget a return of the estate tax 2009 rates with the exemption of $3.5 million per person and a maximum rate of 45% as was in existence in 2009.
In the meantime former Treasury Secretary Robert Rubin has joined with many other individuals and urge Congress to reinstate the estate tax before the August recess. Along with this movement an amendment to the small business jobs bill may be introduced by Senator Kyle to reverse the repeal of the estate tax.
On a procedural note, if someone dies while there is no estate tax, there is no United States Estate Tax Return (706) due. However we are waiting for a new return from the IRS regarding the basis adjustment in certain situations while there is no estate tax.
Interestingly at the state level, under the general reading of the Pennsylvania statute, there is no realty transfer tax due upon the filing of an assignment of a gas lease; however, recently the Pennsylvania Department of Revenue is raising objections to this exclusion. We’ll keep you informed as this unfolds as this will prove to be very interesting.