First thing.. If you make less than about 10, dont worry about the LEGALITY regarding any patent, design right, or copyright.. no one will bother you! - So following comments really only apply if you plan to go into production..
All the original patents for Theremin technology expired many years ago..
But beware - there are newer patents which cover improvements to capacitance sensing, and if one deviates at all from the original heterodyning ideas, you could fall foul of these.
One of the surest ways to be safe is to file a patent application on what you are doing, and proceed with this appication up to the search stage.. this is not cheap (cost me £300 for one dud idea) but it does return everything relevant, and one gets the advice of the patent inspector thrown in 'free' (or, at least this applies in the U.K. - dont know about elsewhere)..
One can also undertake a patent search yourself - but you need to know exactly what areas to look at.. If you go through your patent office, they are looking (or SHOULD be) for causes NOT to grant a patent.
Having said all the above, I think it really does depend a bit on 'luck' and on how strict your patent inspector is.. I have seen patents go through the whole process and be granted, when there was a clear 'prior art' making the patent unworthy of the paper it was written on.. This is failure on the part of the inspector - but one has no legal recourse.. I examined one patent presented to a client by an elderly inventor who had spent his lifes savings obtaining it - The patent was worthless (in fact, it infringed an existing valid patent)
Also, remember.. Even if you do find an active patent which would stop you, do not assume that just because this patent has been granted it is REALLY valid.. I have been told by an international patent agent I had the good fortune to meet, that about 10% of all patents granted can be thrown out as they are invalid - and that certain countries have a record of granting a even larger number of invalid patents.. The U.K. France and Germany are among the strictest, but because of the differences in procedures in different American States, quite a high percentage of American patents are weak.
There is only one real danger - Some 'borderline' ideas are patented by companies who have no intention of ever producing product.. They sit back and watch for similar patents being granted, bide their time, then when the 'victim' is in full production they make their move, demanding huge royalties retrospectively.. There are moves to outlaw this practice, but it is difficult - a bit like cyber-squatting.. these 'squatters' usually have strong legal resources and can squeeze the life out of a victim. There are now legal companies who make their living by taking on the 'squatters'.....