The Wall Street Journal announced today that the House of Representatives is likely to propose a temporary measure to extend the estate tax, rather than allowing it to be repealed. Under a bill signed by former President George W. Bush, the estate tax will be repealed on January 1 if no action is taken. The House proposal is expected in light of the difficulty Senate Democrats and Republicans have had coming up with a permanent rate structure.
The conversations about the estate tax bill are interesting in light of recent discussions about possible ways for the proceeds from a reverse mortgage to be used as an estate planning tool. One way, using a reverse mortgage to pay for a life insurance policy in an irrevocable trust to be paid to the heirs upon the death of the borrower, was mentioned as an option in order to pass on money to heirs without having to pay taxes. Check back for more on these conversations.