Estate tax uncertainty complicates trust administration

The estate tax expires for one year on December 31, 2009.  The estate tax is scheduled to return in 2011 with a $1 million per person exemption.  Congress has spent this year dickering over what an extension of the estate law should be.  There has been no passing of new legislation. It  also appears no passing of new law will occur by year end.

Congress’ estate tax uncertainty will complicate trust administration

This presents a real problem for executors and trustees in charge of larger estates.  Moreover, congress is talking about passing legislation that will be retroactive to the beginning of 2010.  Of course, there’s no assurance this will be the case and the Constitutionality of retroactive laws is always a question.

Executors and trustees are advised to moderate the pace of administration. This is for estates created to the death of a loved one in 2010.  If there is any chance the trust or estate you are administering or putting through probate could be subject to estate taxes then you will need to know what the new estate tax law is before making distributions.  An executor or trustee who fails to pay taxes is personally liable for any tax deficiency.

Do you still have questions regarding estate tax? We know this process can be confusing and difficult. Talk to San Diego estate planning and probate attorney Scott Grossman about your situation and the questions you have. Call our lawyers at (888) 443-6590 or (888) 443-6590 for your FREE 30-minute telephone consultation. Also, order our FREE book The Insider’s Guide to California Probate and Trust Administration.