Estate Tax Repeal Keeps Some Alive a Little Longer, But For What?

On Wednesday, the Wall Street Journal reported that the federal estate tax repeal of 2010 was motivating some wealthy Americans to stay alive or keep loved ones alive at least until today.  One estate planner reported a client who added euthanasia to his estate plan in light of the estate tax repeal.

Now that 2010 is here, will these Americans benefit from changes in the law? According to the Wall Street Journal, 

Congress could pass an estate tax next year and make it retroactive to Jan. 1. Whether that would withstand a court challenge is a subject of debate in the estate-planning world. In the past, when Congress has passed retroactive laws, congressional leaders often issued formal statements of intent in advance.

That hasn’t happened this time. The main statement has been a verbal one by Senator Max Baucus (D., Mont.) on the floor of the Senate, not a joint declaration by leaders from both parties.

In addition, the composition of the Supreme Court has changed, and some financial advisers believe the court might not again bless a retroactive law.

Laura Saunders, Rich Cling to Life to Beat Tax Man, WSJ, Dec. 30, 2009.