As a follow up to our notice of last week, it would appear that no deal has been reached for the extension of the current Federal Estate Tax. Instead, the Federal Estate Tax expired 12/31/09 and we will move into 2010 with the Federal Estate Tax repeal in place.
Our sources anticipate that the legislature will seek a retroactive fix early next year to address this issue. As we have previously mentioned, the possibility of imposing an estate tax retroactively will create innumerable administrative and planning headaches going forward, especially if the law is not passed for any number of months into 2010.
As we move into the New Year, we will continue to keep you apprised of the status of this issue. However, in the meantime, the current law states that there will be no Federal Estate Tax beginning tomorrow.
As a reminder, please keep in mind that the current legislation and 2010 repeal does not mean that there won’t be any tax consequences for those who inherit assets or receive gifts.
Please feel free to contact our office if you would like to discuss these matters in further detail.