2008 Year-End Estate Planning Advisory

In 2008 there were many developments—legislative, regulatory, case law and economic—that affect estate planning and related areas on the national, local and international levels. The Trusts and Estates Practice at Katten Muchin Rosenman LLP is pleased to provide you with a summary of some of the most significant developments and expected future developments in this critical election year, along with recommendations for you to consider for year-end.

Federal Estate, Gift and Generation-Skipping Transfer Tax Exemptions

The estate tax exemption, called the "applicable exclusion amount," will increase from $2 million to $3.5 million per person in 2009—the single biggest increase ever. In 2010, under current law, the estate tax is to be repealed—so that you may leave an unlimited amount to anyone free from estate tax. In 2011, the estate tax is scheduled to return, with only a $1 million applicable exclusion amount. It is widely expected that the law will have changed