A few weeks back, Mitch Album, the well known columnist for the Detroit Free Press, wrote an interesting article about death and taxes. The article follows the effects of the death of George Steinbrenner and the New York Yankees.
The article examined the benefit of passing away this year. Unknown to most people, is that the federal government, repealed the estate tax for one year and one year only.
Prior to 2010, the federal estate tax exemption steadily increased from one million dollars to three and a half million dollars as part of the taxpayer relief act of 2000. The idea was to increase the estate tax exemption over time to mirror inflation and the growth of the middle class, with an end result of repealing the estate tax altogether for the year 2010.