What Is Happening With The Federal Estate Tax?


George Steinbrenner, owner of the New York Yankees, recently died leaving an estate worth $1.15 billion. How much in the way of death taxes is Mr. Steinbrenner’s estate going to pay? In all likelihood, his estate will pass to his heirs free of any death taxes, which otherwise could have approached $500,000,000. This is because during 2010 there is no federal estate tax, and his state of residence, Florida, has no inheritance taxes. 2010 is proving to be a good year to die for very wealthy people who want to minimize their death taxes.

At this point, it is unlikely that Congress is going to impose any federal estate tax during 2010. In part this is because of constitutional issues relating to retroactive application of taxes, but also because Congress seems to be unable to take any action, and with elections approaching, the situation is only likely to get worse. The downside of Congressional inaction is that the federal estate tax returns on January 1, 2011, at the 55% rate, and a $1 million exemption. Thus, it is somewhat premature to be eliminating the unified credit trust planning that many of you have in your estate planning documents.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© McNees Wallace & Nurick LLC | Attorney Advertising

Written by:


McNees Wallace & Nurick LLC on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.