Inheritance tax and estate law

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For all the hype about how the tax kills small businesses and family farms, the facts are that very few are actually hit by the tax — an estimated 550 in 2008 — and fewer still have to be sold to pay it. During last year's presidential campaign, both Barack Obama and John McCain advocated keeping the estate tax in some form.

With Congress focused on health reform, it seems likely that leaders will push passage of a one-year "patch" that would extend the 2009 estate tax limits through 2010, undoing the plan to let the estate tax expire next year.

That's a good idea for two reasons. One is that the Treasury would continue to collect modest but much-needed revenue. The tax will raise about $15 billion this year. The other is that old or ailing members of certain wealthy families will have a lot less to worry about next year.

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Debate on inheritance tax - Our view: Unless estate law changes, it pays to die in 2010 - Opinion - USATODAY.com

Trust planning also prevents many people from having to pay...