Grossman Law Firm Blog

Estate tax uncertainty complicates trust administration

The estate tax is scheduled to expire, for one year, on December 31, 2009.  The estate tax is scheduled to return in its 2011 with a $1 million per person exemption.  Congress has spent this year dickering over what an extension of the estate law should be.  No legislation has been passed and as the Wall Street Journal reported today it appears no new law will be passed by year end.

This presents a real problem for executors and trustees in charge of larger estates.  Congress is talking about passing legislation that will be retroactive to the beginning of 2010.  Of course, there is no assurance this will be the case and the Constitutionality of retroactive laws is always a question.

Executors and trustees are well advised to moderate the pace of their administration for estates created due to the death of a loved one in 2010.  If there is any chance the trust or estate you are administering or putting through probate could be subject to estate taxes then you will need to know what the new estate tax law is before making distributions.  An executor or trustee who fails to pay taxes for the probate estate or trust estate is personally liable for any tax deficiency.

The Grossman Law Firm, A.P.C. are Riverside, California probate lawyers.  We help probate estates in Riverside County, California.  We appear in the Riverside probate court for cases in the area bounded by Temecula, Corona, and Banning, California.  We appear in the Palm Springs/Indio probate court for cases from Palm Springs, Palm Desert, Rancho Mirage, Desert Hot Springs, Cathedral City, Indian Wells, and Indio, California.  If you  would like more information on probate and trust administration then order our free book The Insider's Guide to California Probate and Trust Administration as well as our free DVD Probate a Will or Administer a Trust After the Death of a Loved One.