Saturday, December 25, 2010
S. Alan Medlin (David W. Robinson Professor of Law, University of South Carolina School of Law), Howard M. Zaritsky (attorney, Rapidan, VA), and F. Ladson Boyle (Charles E. Simons, Jr. Distinguished Professor Emeritus of Federal Law, University of South Carolina School of Law) recently published their article entitled Construing Wills and Trusts During the Estate Tax Hiatus in 2010, 36 ACTEC L.J. 273 (Fall 2010). The introduction is below:
In 2001, Congress passed tax legislation dramatically increasing the amount of property that a decedent could transfer without the payment of estate taxes. This legislation included a temporary repeal of the federal estate tax in 2010. Under the sunset provisions of the 2001 Act, however, all of the changes made in 2001 will expire at the end of 2010, and the law will automatically revert to that which existed before the enactment of the 2001 Act.
After the enactment of the 2001 Act, many estate planners believed that the federal estate tax would be permanently repealed before 2010. That legislation did not pass. In more recent years, the mood shifted and most estate planners believed that the Congress would set new permanent estate tax rates and exemptions rather than permit a year in which there was no estate tax. That legislation did not pass, either. The 2010 federal tax surprise--no estate tax and no tax on generation-skipping transfers--has many tax implications that are discussed elsewhere.