Life and Death DecisionsLife and Death Decisions
Executors of estates of decedents who died in 2010 face a tough choice under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the 2010 Tax Act). Should they elect to subject the estate to federal estate tax liability and get a step-up in basis of the assets or opt out of the estate tax into a modified carryover basis? (For more information on this election, see
Susan R. Lipp and Dawn S. Markowitz
Executors of estates of decedents who died in 2010 face a tough choice under the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the 2010 Tax Act). Should they elect to subject the estate to federal estate tax liability and get a step-up in basis of the assets or opt out of the estate tax into a modified carryover basis? (For more information on this election, see “The 2010 Tax Act Election,” by Michael J. Jones in our April 2011 issue, p. 18.)
Although there are some basic guidelines to follow when advising clients about this choice, each situation is different — much depends on the specific facts and circumstances of the client and the estate you're advising. To help yo...
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