Coming in January 2013 is a large increase in the estate tax if Congress doesn’t act. Currently the exemption allows for estates under $5million to be exempted from the tax. However, in January, that will expire and the new exemption will be only $1million.
That means any part of the estate over $1million will be taxed at a rate of 55%. You can imagine how this would be absolutely devastating to a family farm, especially with the current high prices of farmland.
