Congress' Indecision on Estate Tax is a Source of Frustration
"Whatever you do, do it, so we
can plan," said Kip Coleman, Vice
President of a family-owned business
in the East. Mr. Coleman and his
brothers have spent about $22,000
annually for a life insurance policy on their parents to offset estate taxes. Additionally, they have accrued
attorney fees to the tune of about
$5,000 per year for estate planning.
Even so, Mr. Coleman considers the
very real possibility of having to
borrow $2 million to $3 million to
cover estate taxes, depending on what
configuration is in place at the time of
his parents' death.
Mr. Coleman is not alone. According
to a survey from the National
Association of Manufacturers (NAM),
small and medium-sized manufacturers
spent an average of $94,000 this year
on estate planning. This unprecedented
amount is attributed to the uncertainty
regarding estate taxes. Because of the
fluctuating nature of the estate tax,
businesses are planning for multiple
scenarios, which is ultimately costing
them more.
Source: www.Orlando.BizJournals.com, 8-14-06 |
