He had brought the town $4.5 million worth of taxable real estate, twelve stories high.
The program lets a couple remove $100,000 from a taxable estate, or up to $50,000 per person, with no gift-tax consequence.
The Obama plan would exempt the first $3.5 million from any taxable estate.
But over the long term, houses can be expected to appreciate, and this strategy will shift the appreciation out of the taxable estate.
And nearly half the estate tax is paid by the 3,000 or so people who each year leave taxable estates of more than $5 million.
The insurance proceeds will be included in the beneficiary's taxable estate at his or her subsequent death.
Wealthy people may want to consider making gifts before Dec. 31 to cut the size of their taxable estates.
Because of tax credits, the effective lower limit on taxable estates was $338,333.
It would exempt the first $5 million from any taxable estate and index this level to inflation over time.
The Borough has been facing a continued decrease in the value of the taxable real estate for many years.
