• Estate Planning
• Estate and Trust Administration 
• Representation of Owners of Closely-Held Businesses, including Succession Planning 
• Family Office Services
• Tax Exempt Entities and Charitable Giving
• Complicated Tax Matters, including Controversies
• Fiduciary Litigation
• Asset Protection

Urgent Legal Notice

This is an important and urgent message about the federal estate tax and related taxes.

The federal estate tax was eliminated on January 1, 2010. The estate tax, together with the federal generation-skipping transfer tax (“GST tax”), was terminated as of the end of 2009. The federal gift tax remains in effect, although its maximum assessment rate has been reduced.

There also are significant temporary rules that became effective as of January 1 of this year that are designed to accommodate the repeal of the estate tax and GST tax. These transitional rules (i) eliminate the traditional “step-up” in income tax basis for assets passing at death, in favor of a new, so-called “carryover basis” rule, and (ii) dictate that, as of the end of 2010, both the federal estate tax and GST tax are to return at the less favorable levels and rates that previously were in existence on December 31, 2001.

Contemporaneously, there also may be significant aspects of the laws of local jurisdictions that are changed or otherwise require examination.

Many taxpayers, in the face of this situation, will need to consider taking corrective action as soon as possible. It is our belief that most situations can be handled in a straightforward manner. That is, we believe a review of most situations, including pertinent documents, will not be particularly involved or time consuming and that amendatory documents, if necessary, will be susceptible of prompt preparation and execution. Failure to make the effort to conduct such a review and assessment, though, may result in significant and adverse implications to some taxpayers, including the possibility that currently existing documents may not operate in their intended manner as to either tax consequences or dispositive plan.

In some cases, the current status of the law may create tax-saving opportunities for taxpayers.

For more information about this or any other legal matter, please contact one of our attorneys:

George P. Levendis | 202.223.8341
Gal N. Kaufman | 202.223.8342
Patrick M. Schoshinski | 202.223.8343