According to Bloomberg, the federal taxes on estates are expected to increase the most among all levies as tax breaks end on January 1. New York estates worth over $1 million at death will be subject to a 55 percent estate tax. President Barack Obama and other members of Congress are still debating whether they will keep the income-tax reductions for the more affluent.
Many financial analysts said the government may implement a new tax on multimillion dollar estates to preserve some of former President George W. Bush's tax cuts. Some Congress members seem to support a top rate of 45 percent that would be applied after a $3.5 million tax-free allowance. Even so, a general extension for tax cuts appears to be a diminishing likelihood for many who have been hopeful for that option.