1. For 2010, there is currently no estate tax. But Congress could act and change the law retroactive to the end of last year. (Yes, this is probably constitutional, but it would likely face litigation that could go on for several years.)
2. If Congress does nothing, there will be no estate tax for people who die in 2010. However, the law will then change back to the old law in 2011, and the estate tax exemption amount will revert back to $1,000,000 per person.
3. Even if there is no estate tax for people who die in 2010 (and remember – this could change), estates this year will be subject to capital gains tax.  So while the “estate tax” is repealed so far this year, there is a new tax that will definitely affect some people who die in 2010.  In past years, beneficiaries got a “step up” in basis to the fair market value of their property at the date of death.  This year, the first $1.3 million is exempt from capital gains tax, but beneficiaries will pay capital gains tax on an anything over that amount. (Spouses will receive a $3 million exemption).

All of this adds uncertainty and unusual complications to the task of estate planning.

A good article summarizing my very shortened version above is:

http://online.wsj.com/article/SB10001424052748703630404575053430667449198.html?mod=WSJ_PersonalFinance_PF4

What will happen to all your online accounts and assets after you die? How will your loved ones get the passwords to your email and social media accounts so they can inform your contacts of your death?

Several companies are now selling products that guard your online assets and send out messages after you die that will help your loved ones access your online accounts.

I still have questions about these services. I am concerned about the security of listing passwords online. On the other hand, online storage is usually easier to access than a hard copy of your passwords – which is what I traditionally advise clients to put together and keep in a good place.

Many of the online services provide additional bells and whistles, such as allowing you to send out a final message. They may offer storage of all your important documents (which are kept locked until the company has been properly notified of your death – in some ways a digital safe deposit box).

A recent article in the San Francisco Chronicle (http://preview.tinyurl.com/digital-assets) provides a good look at these online services. I’d love to get my readers’ feedback. What do you think – hard copy, or digital safe deposit box?