Important Estate Tax Choice for Decedents Dying in 2010
For decedents dying in 2010 there is an option available with regard to the application of the federal estate tax. In short, the Personal Representative or Executor of an estate can choose (elect):
1) To have the federal estate tax not imposed and to accept what is called "modified carry over basis", or
2) To have the federal estate tax apply subject to a $5 million dollar estate tax exemption amount and the availability of the "step up" in basis rules.
This is an important decision and may have serious estate and/or income tax ramifications depending on the facts and circumstances of the decedent's estate.
The following article does a fair job explaining in relatively simple terms the potential estate and income tax ramifications of the choice available to the representative of a decedent's estate who died in 2010. If this topic is of interest to you, I recommend you read the article. http://blogs.smartmoney.com/tax/2011/01/18/the-dead-have-choices-2010-estate-tax-options/
Attorneys in York, Maine serving Maine (York and Cumberland counties including: York, York Beach, Kittery, Kittery Point, Eliot, South Berwick, North Berwick, Berwick, Ogunquit, Wells, Kennebunkport, Kennebunk, Alfred, Lyman, Arundel, Biddeford, Saco, Sanford, Springvale, Acton, Shapleigh, Limerick, Scarborough, and Portland) and Northern Massachusetts (including: Boston, Saugus, Dorchester, Roxbury, Waltham, Beverly, Lynn, Medford, Newbury, West Newbury, Newburyport, Newton, Peabody, Lowell, Lawrence, Andover, Boxford, Amesbury), with a focus on Estate Planning (Wills and Trusts, probate and estate administration), Elder Law, and Tax (estate, gift, and income) matters, and providing general business formation (LLC, Corporations, and General and Limited Partnership) services and business succession planning and real estate services.