Florida and Other States Rush to Protect Widows and Widowers from Estate Tax Fiasco
While congress has yet to pass any laws addressing the 2010 estate tax lapse, several states are racing to enact legislation to assist families whose estate plans have fallen apart. Experts worry that the new, temporary estate tax laws could cause people to accidentally disinherit spouses, which in turn would lead to costly and lengthy court battles over the intent of the deceased. The lapse could ultimately impoverish widows and widowers, and end up requiring families to pay more estate taxes than are necessary.
Virginia has led a handful of other states in passing emergency legislation to nip these problems in the bud. Florida currently has estate tax legislation pending. Most of the emergency estate laws require any tax terms or formulas to be read as if the 2009 estate tax were still in effect, unless specifically spelled out otherwise. In Florida, potential beneficiaries may go to court if they believe that the actual estate plan is not what the deceased intended; those with ambiguous documents can go to court right away to determine the decedent's intent, and all heirs might have to wait until the court has ruled to collect their inheritance.
Unfortunately, since no one expected the congress to allow the estate and other taxes to lapse, most wills and trusts are still written to maximize estate tax savings under the 2009 estate and generation-skipping tax rules. Read more about the confusion caused by the estate tax lapse at States Race To Clean Up Congress' Estate Tax Mess.
If you live in the Jacksonville, Florida or Orlando, Florida area and require assistance with tax planning, please contact our firm for estate planning legal counsel.
