The saying used to go, “Nothing is certain but death and taxes.” That is not the case this year. As 2010 nears an end, there is still little indication as to what will happen with the Federal estate tax. In 2009, the exemption was $3.5M and anything over that was taxed at 45%. In 2010, the Federal estate tax was repealed. (Good year, if any, to die if you have a sizable estate!) In 2011, the exemption will revert to $1M and anything over that will be taxed at 55% percent. Get used to saying, “Nothing is certain by death and (insert snarky comment re: Federal government decision making here).”
Note: The Future of the Federal Estate Tax blog is an easy way to keep up with the latest news on the topic.