On May 6, 2010, Forbes.com published How To Protect Your Family From Estate Tax Uncertainty, by Ashlea Ebeling. This article highlights the uncertainty caused by the unsettled wealth transfer laws, and it gives tips on what families can do.
one heiress, four tax scenarios
Ebeling first describes one “wacky” circumstance caused by the “crazy terms of the 2001 Bush tax cuts”:
An Illinois woman inherited not quite $100 million this year. Estate taxes could consume 53%, 45%, 16% or none of it, depending on whether the federal and/or Illinois estate taxes--which both lapsed on Jan. 1, 2010--are reinstated retroactively.
uncertainty is universal
Ebeling then shows that the problems caused by the repeal of the estate tax are not problems of just the wealthy: “Lots of families are living in similar estate limbo.”
what to do in the face of uncertainty
Ebeling discusses five things people can do in 2010:
- Have contingency plans
- Get the basis
- Reconsider your executor
- Give a little
- Give a lot
Ebeling’s article shows that estate planning is important, especially in uncertain times.
Ebeling’s article will also appear in the hard copy of Forbes Magazine. The headline in the hard copy of Forbes Magazine dated May 24, 2010 is “Estate Tax Limbo.”
Those who like reading things in paper can get a free trial issue of Forbes Magazine, here. If you like it, you can get 25 more issues for only $29.99.
