While an immediate and outright repeal is highly unlikely, Congress is interested in action. The repeal legislation has been met with the threat of a presidential veto. It s likely that Congress will increase the exemptions for small businesses and farms. Much of the general public probably doesn t understand the fundamental reason behind the estate tax. To most Americans, any tax repeal is seen as a good thing.
Many companies currently have provisions that allow joint life policies to be split.
And, finally, contrary to what some industry observers have speculated, this would not be a boon for senior viaticals, because joint life policies are not as appealing to viatical companies. Thus, persistency of existing policies does not seem to be an especially troublesome issue. It would impact new sales. Even so, there are other factors operating that would mitigate the impact. For example, one is the extent to which the growth in wealth in this country outpaces the phase-in of any increase in the exemption.