Cheryl Costa informs about some of the 2010 estate tax rules: modified carryover basis, potential for cap gains tax

Cheryl Coast, No estate tax due in 2010 but beware of cap gains (Boston Globe, 9/7/10):

As you probably know, there is no estate tax due for people who die in 2010. All year, we have been expecting the estate tax laws to be updated (and possibly imposed retroactively to January 1, 2010) but that has not happened. Further, it now appears that there will be no changes for 2010 and that people who die this year will not owe any estate taxes (or more accurately, their estate won't owe any estate taxes.)

However, that doesn't mean that large estates get a "free pass" this year. Things might even be more complicated. That is because a "carryover basis" rule is in effect this year.