CAUTION:  NEW ESTATE TAX DEVELOPMENTS

Congress adjourned its 2009 session without addressing the expiring estate tax rules.

As of January 1, 2010, there is no longer an estate tax. Additionally, there is no longer an increase in the decedent’s asset-cost-basis to date-of-death-asset-values. As a result, this could result in larger income taxes than under the 2009 estate taxes rules. These changes may affect many more households than the previous rules, and could create a much larger advisor fee for reconstructing decedents-cost-basis.

The following library text has not been edited to reflect these new estate tax rules at it is the general consensus among professionals that Congress will have to address this issue. Look for changes in the estate tax laws in early 2010 that could be retroactive to January 1, 2010.

Check with your advisors for updated estate tax information.