Happy New Year!
I am back after a bit of time off to celebrate the holidays with my family in Colorado. My three - almost 4 year old daughter - finally figured out how to ski the whole hill without help and I was going down black diamond runs with my 5 1/2 year old boy. We had a nice time recharging in the mountain air and being thankful for what we had in 2009. Hopefully you had a great break as well and are ready to start 2010 on a strong note.
- No estate tax in 2010 - Did you read that right?
Yes you did... I am not the first to post on this topic but I believe that it is important to highlight this for several reasons. First, let me provide some basic background. In 2001, Congress revised the estate tax laws to increase the value of an estate to be exempt from taxes gradually through 2009. That law eliminates the federal estate tax in 2010. The estate tax is the amount that the government collects (in 2009 it was 45% on assets exceeding $3.5 million). Most people thought that Congress would not let the estate tax expire but the partisan politics and focus on the health care overhaul prevented any law from being passed.
This situation has created a great deal of uncertainty as to how to plan. If you have an estate plan in place it may not function as it was intended when written (i.e. a spouse that survives may not receive any assets which could all go to the children).
- What this means for you?