The 2010 Lapse in Federal Estate and GST Taxes: Planning Issues
ESTATE TAXES
Under current law, the Federal estate tax is repealed for those who pass away in 2010 but returns in 2011 with more burdensome terms (lower exemption and higher top rate). Whether Congress will pass new legislation in 2010 to address the repeal period is uncertain, as is the content and effective date of such legislation. It is possible that legislation will be retroactive, thus eliminating the repeal. Even if the repeal remains in effect throughout 2010, state death taxes will still be due in states that impose such taxes.