As of 2/13/10, U.S. estate tax outcomes — (and capital gains tax for the heirs) — for taxpayers who pass away in 2010, are becoming more confusing each day Congress does not act to replace expired laws.
The following is a Wall Street Journal article on the complete mess Congress has made of the U.S. Estate tax and how we are seeing tax winners and losers based on the date of death.
Adam Smith wrote in the 1700s that a tax systems should be fair, simple and predictable. Congress has failed us on all three counts with the Estate tax…and the personal income tax…and the payroll tax…and the corporate income tax…and the excise tax…OK, I’ll stop now.
Good advice from the article:
“Experts are telling those affected to avoid irrevocable actions, like distributing or selling assets, while the situation remains unresolved.”