For 2010, the federal estate tax has been repealed. But due to Congressional inaction, it is set to come roaring back in 2011 with only a $1 million exemption amount (the amount that each person may shelter from estate taxes when they die).Here is an interesting article from the Wall Street Journal that addresses how the failure to address the estate tax issue has incentivized death.
The article indicates that it is unlikely Congress will apply the estate tax retroactively to Jan. 1, 2010. As each day passes, it become less and less likely that Congress will pass new legislation to increase the exemption amount in 2011.
Interestingly enough, our state passed the Death with Dignity Act in 2009. The law allows terminally ill Washington residents, who have less than six months to live, to request a lethal dosage of medication. The law requires that the patient submit a form to request the administration of the life ending medication. The Washington Department of Health's website indicates that it collected 64 forms in 2009 and 49 form in 2010. The questions becomes whether the number of forms collected will increase in 2011 as a result of the the federal estate tax laws.
I hope no one is that passionate about estate planning.
