Super Committee Deadline Looms...

The deadline of November 23, 2011 is quickly approaching for the special committee of Congress (the “Super Committee”) to issue a formal proposal containing at least $1.2 trillion in deficit reduction for the full Congress to consider.  There are lots of rumors as to what the Super Committee will recommend for estate and gift tax, especially about whether the $5 million exemption will be reduced to the 2009 level of $1 million.  If the Super Committee makes a proposal that Congress passes, the changes could take effect prior to the end of this year.  If the proposal made by the Super Committee is not passed, automatic cuts will be made to various spending areas, including defense spending. 

In light of the possible changes, consideration should be given to accelerating the use of the $5 million gift tax exemption and other estate planning strategies, and, of course, estate plans should be reviewed.