Based on the new tax rules (which might make it to the next Congressional election in less than two years before they get changed again), there is a best time to die if you have a significant estate. The estate tax exemption increases each year through 2009, and then is repealed in 2010, but only for one year! (Yes, the estate tax is already scheduled to come back!). In that same year, assets would begin to be inherited at their purchase price rather than market value (carryover basis), so heirs would inherit old capital- gains tax liabilities. The bookkeeping burden alone would be horrendous. If carryover basis were maintained after 2010, when the estate tax is automatically reinstated, then heirs could end up brutally taxed on both the value of inherited assets and old gains on those assets.
Therefore, you would be best to die in 2009 when there will still be capital gains forgiveness and an estate exemption of $3.5 million. Mark your calendar now.
If in fact your timing is not that good, we can show you how to eliminate estate taxes at all times and also insulate against any capital gains tax on future appreciation of assets. Simply check off on the reply coupon for details.