Avoid Death or Taxes in 2010 - Take Your Pick
http://www.kattenlaw.com/possible-one-year-elimination-of-estate-and-generation-skipping-transfer-tax-in-2010/
If you've been all wrapped up in the health care machinations in congress, and you haven't yet read my e-newsletter The Planned Giving KeyTM, it may have slipped your mind that we are beginning 2010 without a federal estate tax. The above link to the e-newsletter from the esteemed law firm of Katten Muchin Rosenmann LLP discusses some of the issues that will need to be addressed if something isn't passed before December 31st.
I have to say I'm stunned things have gotten to this point. Our country is facing unparalleled deficits and our legislators let an important tax just fall off the page. I'm not sure which horrifies me more, the mess this will make for estate planners (including the fact that state taxation will remain) the fact that these revenues are so desperately needed and no one cared enough to handle this in a timely manner, or the fact that heirs (probably already greif-stricken) will be mired in issues regarding capital gains, state taxes, wondering what the federal tax will be once it's decided and can they make it retroactive!
Some may think that 2010 will be a good year to die (just joking-ha,ha) - while you can't beat death you can at least beat the tax! But when stepped-up-basis is eliminated it may create potentially huge capital gains exposure.
And what's a planned giving officer to do without an estate tax lowering technique? Of course we know this isn't the main reason bequests are made but this is definitely not a good precedent to set.
What do you think of this mess?
P.S. You can sign up for our free planned giving newsletter, The Planned Giving KeyTM on our website www.breakthroughphilanthropy.com. Holiday greetings and best wishes for the new year!
If you've been all wrapped up in the health care machinations in congress, and you haven't yet read my e-newsletter The Planned Giving KeyTM, it may have slipped your mind that we are beginning 2010 without a federal estate tax. The above link to the e-newsletter from the esteemed law firm of Katten Muchin Rosenmann LLP discusses some of the issues that will need to be addressed if something isn't passed before December 31st.
I have to say I'm stunned things have gotten to this point. Our country is facing unparalleled deficits and our legislators let an important tax just fall off the page. I'm not sure which horrifies me more, the mess this will make for estate planners (including the fact that state taxation will remain) the fact that these revenues are so desperately needed and no one cared enough to handle this in a timely manner, or the fact that heirs (probably already greif-stricken) will be mired in issues regarding capital gains, state taxes, wondering what the federal tax will be once it's decided and can they make it retroactive!
Some may think that 2010 will be a good year to die (just joking-ha,ha) - while you can't beat death you can at least beat the tax! But when stepped-up-basis is eliminated it may create potentially huge capital gains exposure.
And what's a planned giving officer to do without an estate tax lowering technique? Of course we know this isn't the main reason bequests are made but this is definitely not a good precedent to set.
What do you think of this mess?
P.S. You can sign up for our free planned giving newsletter, The Planned Giving KeyTM on our website www.breakthroughphilanthropy.com. Holiday greetings and best wishes for the new year!
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