The Federal Estate Tax or lack thereof, Leaves Estate Planning Attorneys Uncertain
Currently, there is no federal estate tax. Although it is coming back next year, there is great debate over what the tax will look like. Unless Congress acts, the estate tax will only exempt $1 million of a person’s estate—under the previous estate tax $3.5 million was the max amount to be exempt. And you’re not off the hook if you have an heir who passes in 2010, you may still have a federal tax liability on your inheritance. So, how are estate planning attorneys dealing with the legal uncertainties? They try to do as little as possible and when they absolutely have to do something, they just hope you did the right thing, suggests Steve Hartnett, associate director of education at the American Academy of Estate Planning Attorneys.
Estate planning attorneys are also facing equally confusing questions when asked to draft an estate plan for someone who is living now and plans on doing so, at least until 2011. To read more on this topic see Legal uncertainties over the federal estate tax.
With all the confusion over the current state of the federal estate tax it is wise to seek legal counsel. Drafting your own documents could result in some significant problems in the future. If the current legal uncertainties are perplexing attorneys who have been practicing in the field for decades, it is sure to confuse someone who has no legal background whatsoever. Contact an Estate Planning Attorney to ensure you avoid any future problems with your estate.
