The past year has been a mixed blessing for estate-planning professionals and their clients. On one hand, the increased estate and gift tax exemption amounts of $5 million (now $5.12 million) and the lower tax rates provided a wide array of planning and gifting opportunities. On the other hand, the volatility and fragility of the market created an unstable environment, causing reluctance on the part of some clients to take advantage of the window of opportunity the favorable exemption amounts and tax rates created. Add to that a proposed bill, the “Sensible Estate Tax Act of 2011,” (H.R. 3467, introduced by Congressman Jim McDermott (D-Wash.)) that seeks to lower the exemption amounts and raise the tax rates in 2012, and you have the makings of some challenging times ahead.

In this issue, experts from the different committees of our editorial advisory board offer their takes on what's happened in 2011 and where we're headed in 2012, as we focus our efforts on “riding out the storm.”

Our issue also includes an update of a popular article from 2010 on the best jurisdictions in which to set up a trust. In “Which Situs is Best in 2012?” by Daniel G. Worthington and Mark Merric (p. 51), the authors provide their new rankings on this controversial topic. And, David A. Handler once again gives us his overview of the most important tax cases from 2011 in his special pullout section, “Tax Year 2011.”

As we start a new year, I'd also like to thank the entire Trusts & Estates editorial advisory board for their invaluable assistance in soliciting, selecting and authoring articles for our journal. I, along with the entire T&E team, greatly appreciate all they do for us.