We are fast approaching the end of 2010, and the end of the no-death-tax year. The estate tax went away on December 31, 2009, and hasn't been in effect since then. It is scheduled to return in 2011, with a higher rate and a lower exemption. Most observers don't believe that will happen, but Congressional gridlock might rule the day.
According to the Wall Street Journal, the most likely scenario is that Congress will enact a stop-gap measure that will reinstate the estate tax at 2009 levels. That means $3.5 million in exemption and a top rate of 45%, rather than the $1 million exemption and 55% rate now scheduled if Congress doesn't act. One thing that does seem certain is the estate tax will be back in 2011 in one form or another.
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