2010: The Estate-Tax "Free" Year--A Real Gift from the Government.?.
When my grandmother passed away about 10 years ago, her estate had a six-figure estate tax bill due. Money that would've went to her heirs (including my mom)--went to the government instead. In 2010, the current status of the Estate Tax is that it is on a one-year hiatus, set to reset in 2011, at the same rate it was when my grandmother passed away.
New York Times writer, David Kocieniewski sums up the current situation of the Estate Tax best when he says "A Texas pipeline tycoon who died two months ago may become the first American billionaire allowed to pass his fortune to his children and grandchildren tax-free." Imagine a $9 billion dollar estate paying less in estate tax than my grandmother. I recommend reading his entire article.
Well, and that's what we currently have--it is what it is. I believe 2010 may become, a true "gift" year to those people that pass away with large estates. Given that we are so far into 2010, it is an interesting legal issue as to whether Congress will attempt to pass a retro-active Estate Tax. Given that the family of the Texas billionaire will save close to $5 billion in taxes, they may have some extra money to pay legal fees to make a constitutional argument against a retro-active tax.
So the Estate Tax Odyssey continues where the government has giveth, will it taketh back???
