Under current law, there is a one year repeal of the federal estate tax which means there will be no estate tax due on estates of decedents who die in 2010. In addition to the repeal of the estate tax, the generation skipping transfer tax (“GST tax”) has also been repealed, and the automatic step-up in basis at death has been eliminated. In 2011, the current tax law will “sunset” and the estate tax and GST tax will return with significantly higher tax rates and lower applicable exemptions than were in place in 2009.
It is likely that Congress will attempt to enact some modified form of estate tax but as of now, there is a lot of uncertainty in this area. This is an area that should be discussed on an individual basis in order to determine if additional planning is necessary.
If you have questions regarding estate tax, we are happy to meet with you for an initial consultation, free of charge. Please call 720-229-0428 to make an appointment.