Legal Question in Wills and Trusts in California

There is a federal exclusion in the millon dollar range that easily covers all of the assets, wtilh tax only payable on interest earned after the date of death.

None. 2010 there is no estate taxes. Last year the exemption amount was $3,500,000.

Federal and state income taxes may be owed for 2010, as well as 2009 if those were not filed before she died. Since your friend died in 2010 there is potentially no estate tax, unless, as is expected, Congress retroactively enacts one for this year. If that is done, there is no clear indication of what the "exemption" amount will be. Depending on what the total assets were, the executor/trustee may want to reserve some amount for potential tax obligations.

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