"Will the Estate Tax Disappear?"

Look for interesting updates about the impending fate of the Estate tax and current proposed legislation in the new blog: Future of the Federal Estate Tax
http://threepointfive-45.blogspot.com/

"On October 22, 2009, Laura Saunders of the Wall Street Journal published an article, "Will the Estate Tax Disappear?"
Notes:

• If the estate tax disappears in 2010, there would be a carryover basis instead of a step up in basis, and this change might hurt some people. (Editors note: Step up= assets subject to capital gains tax receive a new basis (buying price), which is what the assets are worth at death. Carryover= the original buying price stays after death.)
• A retroactive estate tax is constitutional.
• The article gives a good summary of the Baucus bill.
• It ends with an excellent quote from a practitioner: "I would advise anyone who wants to do a GRAT or Family Limited Partnership to do it soon, like yesterday." (Editor's note: They are advanced estate planning devices that are relevant to high net worth individuals).

http://online.wsj.com/article/SB10001424052748704224004574489581033118194.html