Where Oh Where Has the Estate Tax Gone?

A virtual Black Hole was created for all of us who have, or intend to create an estate plan this year. As of January 1, 2010 our federal estate tax laws were repealed. However, only persons dying on and after January 1, 2010 but no later than December 31, 2010 will be affected. It may be comforting to note that Senate Finance Committee Chairman Max Baucus has pledged that the Senate will pass a bill reinstating the tax, which has passed through the House of Representatives in legislation previously passed on December 3, 2009, but this fact still leaves us with the question of whether a retroactive reinstatement of the federal estate tax will survive constitutional scrutiny for persons dying on or after January 1, 2010, but before the date of the bill’s passage and signing by the President. Best solution is to see your estates and trusts professionals and do whatever it takes to shelter your assets from estate taxes now, rather than later.