Sometimes I Don't Have All the Answers

Some people ask me questions thinking that I know everything related to estates. But due to the inaction of Congress and the President, I do not know what the tax laws are for people who die during 2010. I felt like an idiot this morning when I had a conversation with a surviving spouse whose husband had died in February, 2010. She had quite a few questions about taxes. The conversation went something like this:

Question: Now that my husband has died, do I have to pay estate tax?

My answer: I don't know.

Question: Will our assets get a step-up in basis?

My answer: I don't know.

Question: Do I have to get my real estate appraised?

My answer: I don't know.

Question: If Congress brings back the estate tax, what will the exemption amount be?

My answer: I don't know.

Question: Is it legal for Congress to pass a tax law and make it retroactive back to January 1?

My answer: I don't know.

Well, the conversation did not go exactly like that, but you get the point.

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