Estate Tax: What You Need to Know for 2010 (MoneyWatch.com)
CBSMoneyWatch.com: At first glance, the failure of Congress to plug the 2010 estate tax loophole appears to be good news for children of ailing rich parents — and of little consequence to everyone else. But in fact, by letting the federal estate tax lapse this year, Congress has created a number of very significant unintended consequences and increased the chances that you a client’s family will owe taxes on an inheritance. Yes, the consequence of the disappearing estate tax in 2010 means that some beneficiaries may owe capital gains taxes on inherited assets but not incur a federal estate tax liability. In addition, since many Wills and Trusts have been drafted with the assumption that the estate tax exists, a Will that made sense last year (or any other year, for that matter) could result in your surviving spouse getting little to no property from your estate. Here’s what you need to know about the estate tax, and how to protect yourself and your heirs, at least until Congress takes action. I’d recommend checking out this powerful video from Eric Schurenberg, explaining how critical estate planning is (from CBS MoneyWatch.com):
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