Board Certified, Estate Planning and Probate Law - Texas Board of Legal Specialization.
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Special Note: Beginning January 1, 2010, the Federal Estate Tax expired for the duration of 2010. This is of keen interest to the survivors of anyone who dies in 2010. It's good news for well-heeled families. But there is also a downside to the expiration of the estate tax. Now you do not automatically get a new income tax basis in inherited property equal to the fair market value of the property on the date of death. So if you sell the property you inherited in 2010 you may well pay a big capital gains tax that you would not have had to pay if the decedent had died in 2009 or earlier. (Some people think that the government will get more capital gains tax from the current situation than it will lose in estate tax.) This problem with the loss of new basis can be corrected in many cases if the executor of the decedent's estate takes certain steps (that are toocomplicated to discuss now in detail). Please just be aware that anyone who inherits something other than cash in 2010 needs to find out all about the new rules for the income tax basis of inherited property. Are you confused? Well, it gets worse. In 2011, the old Federal Estate Tax bounces back like it was when George Bush was elected in 2000. Congress could step in and pass a new law that will make further changes. But it's now June 8. It's starting to look like Congress may not change the law. In that case we will soon have an estate tax threshold of $1,000,000 (beginning January 1, 2011).
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This page was last updated June 8, 2010. Texas Estate Planning was revised on March 9, 2009. Estates of Decedents in Texas was revised March 6, 2009. What Liability Do I Have for my Hubby's Debts (and Vice Versa) was posted on March 22, 2004. Basic Rules for Distributions from Retirement Plans was revised March 5, 2009. Required Minimum Distributions-A Comedy in V Acts was revised on March 13, 2009. The laws are constantly changing. Ask your lawyer for an update on your situation.
Copyright 2010 by Henry C. McFadyen, Jr. All rights reserved.