Uncertain Estate Tax Future Creates Uncertainty For Heirs Now

Until the uncertainty surrounding the future of the estate tax is cleared-up, heirs of loved ones dying this year may be confused about how to handle inheritances from their loved ones.  A recent New York Times article suggests the following for these confused heirs:

• Set aside funds to pay an estate tax in case congress is able to retroactively reinstate the estate tax for 2009.
• Delay selling assets that have appreciated in value, if possible, in case unfavorable capital gains changes do not carry over to 2011.
• Segregate unneeded assets and do not touch them in case it later becomes beneficial to disclaim them.

See Deborah L. Jacobs, Estate Tax’s Unclear Fate Challenges Heirs, NY Times, Feb. 17, 2010.