One Year Estate Tax Repeal -- Can Congress Act Before New Year's Eve?

As it stands right now, the current Estate Tax (enacted in 2001) that applies to estates of a certain size ($7 million for families, $3.5 million for individuals) will be repealed on the first day of 2010, only to return in one year's time (01/01/11). In its rebirth on January 1, 2011, the top tax rate will be 55% (today it's 45%) and the exempt amount will be $1,000,000 (right now it's $3,500,000) -- and it will apply to smaller estates (e.g., $1 million for individuals).

However, for this one year -- 2010 -- there'll be no tax rate and no exempt amount, because there will be no Estate Tax unless Congress does something.

Checking the online newsfeeds, Reuters is predicting chaos ("Estate Tax Repeal Seen to Bring Chaos") and the Associated Press is reporting a probable extension of the current law, passed retroactively in January 2010.

Today is the day before the day before Christmas. Already, the Senate declined a House proposal to temporarily extend the current Estate Tax for a two months, to give Congress time to do something more concrete after year's end. Today, there's nothing on the table. What are the chances that President Obama will have something to sign within 10 days time?

There's talk about Congress passing legislation early next year that would apply retroactively. Of course, someone starts talking about retroactive taxation and someone else immediately brings up litigation on its constitutionality.

And, let's not forget that in 2010 -- unless something happens -- some estates that will be required to pay a capital gains tax that has been avoided in past years.

It's going to be an interesting year in probate circles ....

Blogs for the Probate Practitioner

Slowly but surely, we're compiling a link list (there, on the right side of the screen) of web sites that are helpful to those involved in Bexar County Probate Court issues. The sites range from eminent domain to elder law, and have information helpful to the lawyer and non-lawyer alike.

Blogs are not included in this link list. However, more and more blogs (or sometimes, "blawgs") are popping up here in Texas -- recently, the Texas State Bar began providing a blog directory on its site. The Bar's Blog Directory covers a variety of legal specialties: there are blogs for family law practioners, tax lawyers, and personal injury attorneys, among others.

The Bar's directory is new and growing -- but as of today, there were no probate-specific blogs listed. We did find a few ....

First, we found Texas Estate Planning Blog provided by Ford & Mathiason, a law firm with offices in both Houston and Dallas. This blog began in February 2007 and looks promising.

There was Gary M. Howell's Texas Estate Planning and Probate Law Blog which has some good information -- but the blog died in November 2005, when attorney Howell took a spot with Merrill Lynch to work with high net worth clients (according to his farewell post).

And, we don't understand why Prof. Gerry Beyer's Blog hasn't made it to the Bar Directory yet. It's a great resource, updated often, and a real find for probate practioners everywhere.

As for law blogs that are not probate-specific, there are several that you may find worth your time:

Jerry Buchmeyer has been blogging since 2003, posting on the same humorous topics as his beloved Texas Bar Journal column. It's not probate-specific, but what the heck. It's funny.

Houston attorney Tom Kirkendall has posted to Houston's Clear Thinkers for awhile now. It's got lots of legal thought, plus a variety of entertaining issues. Especially if you like baseball.

Practical Lawyering is a blog written by Chicago attorney who has left a big government job to open a solo practice specializing in estate planning. So far, he hasn't revealed his name. Wonder why....

At the end of April 2007, the San Antonio Express News began a blog, SA Hearsay, where reporters Elizabeth Allen, Guillermo Contreras, and Maro Robbins post regularly. The blog promises to provide "[l]egal tidbits from Bexar County's courthouses and beyond."

While this blog is not probate-specific, Ms. Allen has been posting regularly on the BK Johnson trial, which is currently being heard in our sister court, Probate Court One, with Polly Jackson Spencer as presiding judge. FYI, closing arguments begin Monday.

Other law blogs you might find interesting:

The Wall Street Journal's Law Blog
The Supreme Court of the United States Blog
Yale Law Journal Blog - The Pocket Part
Ernie the Attorney