As a result of federal legislation passed in 2001, the estate tax was initially repealed for persons dying in 2010.
The Tax Relief Act of 2010 restored the federal estate tax for 2010 with a maximum tax rate of 35 percent and a per-person exemption of $5 million. It also provided an option: Estates of persons who died in 2010 could elect an estate tax rate of zero, along with a carryover basis for the assets rather than a stepped-up basis.
To make the election, the estate must file IRS Form 8939. The filing deadline is January 17, 2012.
If you are the executor or family member of a person who died in 2010 with a sizeable estate — and you have not already made or ruled out this election — contact your advisor at Bader Martin immediately to discuss your options.
