• 10
  • May
    2010

If you die this year, will your estate planning documents have the effect that you want them to have? Since Congress allowed the estate tax to expire this year, the 2010 "death" tax will be zero. If there is no change in the law, the estate tax will be back next year for estates worth more than a million dollars.

Aside from being "lucky" to die in a no-estate-tax year, what effect could an absence of estate tax have? Do you know exactly how your bequests are structured? For example, if your estate planning documents say that you bequeath your spouse an amount equal to the federal estate tax exemption, and there is no tax and no exemption, you just bequeathed your spouse ZERO DOLLARS.

Seven states have passed laws that say if someone dies in 2010, their estate planning documents should be interpreted as if the person had died in 2009. Florida is not one of those states.

Unless there is a change in Florida law (and, frankly, even if there is such a change), it is going to be very important to consult with an experienced estate planning attorney to make sure your estate plan is up to date and that it will have the effect you want it to have.

You should discuss with your attorney plans for carrying out your wishes under all contingencies. In other words, how to make sure your wishes are carried out if there is no estate tax, there is a high estate tax, there are no provisions for interpreting estate planning documents in a common-sense way, or if there are such provisions.

The law is changing, and it is very likely to change again soon. Consult with an experienced estate planning attorney to make sure your heirs don't end up feeling like they were playing inheritance musical chairs, and they ended up without a seat when the music stopped.