With no Federal Estate Tax in 2010, heirs of wealthy decedents have pocketed huge sums of money that would otherwise be paid to the IRS at rates up to 45%. For example, George Steinbrenner’s family is estimated to have saved approximately $500 million as a result of there being no Federal Estate Tax! In 2011, the tax comes back with a vengeance (at a higher, 55% rate), as described in this NY Times article. Even though the state of estate taxes is in flux, there are plenty of things you can do now to get your planning in order, whether that means dealing with current issues like the lack of step-up in basis this year or dealing with state death taxes…or planning for when estate taxes come back next year.
http://www.nytimes.com/2010/06/09/business/09estate.html?src=me&ref=business