Legislation passed by Congress and signed into law by President Obama at the end of 2010 significantly changes the tax rules impacting estate plans. But, while the changes are significant, they are only temporary.
Now, the Internal Revenue Service has provided at least a partial answer to the question of when the election must be made for choosing which estate tax set of rules to apply to a 2010 decedent's estate.
Roger McEowen, professor of law at the Center for Ag Law and Taxation or CALT at Iowa State University, has updated his article which is running on the CALT website. The article explains the many changes in the federal estate tax for 2011 and 2012—Estate Planning's New "Ballgame." You can read the article at www.calt.iastate.edu/temporarycertainty.html.
Get "the rest of the story" on new estate planning changes
The following information is an overview that leads to Roger McEowen's article that was published on the ISU Center for Agricultural Law and Taxation website on February 17, 2011.
In mid-December of 2010, the U.S. Congress passed and the President signed into law the "Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010." The act contains the most significant changes to transfer taxes (estate, gift and generation-skipping tax) in decades. The changes are so significant that standard estate planning techniques may no longer be necessary.
However, the changes are only for 2011 and 2012, with no certainty at the present time as to what 2013 may bring. So, the uncertainty concerning the future of the estate tax that was present for much of 2010 is only removed for two years. You can go to the CALT website listed at the beginning of this article to read McEowen's article explaining the key changes in the law and how those changes will affect your estate planning.