Post By George in Estate Planning - Documents
The federal gift tax exemption rose to $13,000 for calendar 2009; the estate tax exemption rose from $2,000,000 per person to $3,500,000. The consensus among those-who-watch-closely is that likely estate tax legislation will retain the $3,500,000 exemption in coming years, and the federal estate tax will not be repealed for the year 2010. Conversely, it appears likely that New York State will NOT make any changes, so New York’s estate tax exemption will remain at only $1,000,000. The state tax rates range from 6% to 16%, so for folks with home equity, some retirement savings, and life insurance, an “involuntary contribution” to Albany’s coffers could be more of an exposure than you realize. In many cases, especially regarding life insurance, sound planning can minimize or even eliminate the impact of estate taxes.
Post By George in Estate Planning - People
With tongue only slightly in cheek, I will hazard to say that no one reading this memo has canceled their car or home insurance in response to difficult economic circumstances. Certainly, some of you may have reviewed your coverage (we did!) to make sure that you have the right protections for the right premium, which is wise in any circumstances. Times like these only underscore the importance of preserving the value of one’s balance sheet. I would suggest that estate planning be viewed in the same light: as a wise investment not only in maximizing the value of assets to be passed on, but also in ensuring continuity and care for those who depend on you (which increasingly can include parents and young adult children). So, being mindful of the fact that weaker financial and real estate markets may have had a negative impact on family wealth, we continue to believe that estate planning is a safe and smart place to make your next investment.
Post By George in Estate Planning - Documents
You reviewed your will and concluded that some provisions need to be updated, and you’re curious how best to do so quickly and cost-effectively. First, do not ever write on your will, either to strike out or to add text. Just don’t – it doesn’t count and it invites litigation. Changes can be made (i) by a new written “codicil” (an amendment that must be executed with the same formality as a will (e.g., at least two non-beneficiary witnesses)) or (ii) by executing an entirely new document. In this era of word processing and changing estate tax laws, it’s usually wiser to re-draft the whole document (especially if you’re working with a new attorney), but sometimes a quick codicil is appropriate.
Post By George in Sightings/Writings
Home Burials Offer an Intimate Alternative,” NYT July 20, 2009, describes the trend toward home funerals/burials and notes some of the legal issues involved. Amid the wave of celebrities who shuffled off this mortal coil in recent weeks, CNN.com reported the death on July 18 of Henry Allingham, at 113 the world's oldest man and the oldest surviving British WWI veteran.
Post By George in Estate Planning - People
When was the last time you reviewed your will for (i) nominations of executor, guardian, and trustee; (ii) the “back-up” or successor persons for those roles; or (iii) (getting technical) whether your credit shelter trust is funded with a fixed formula or a disclaimer? An outdated will can, in some circumstances, be worse than no will at all. Grab your file copy and review not only the plan for disposition of your assets (unless your immediate family has changed, this is probably okay), but also the various appointments, including the successors and substitutes. Could be time to re-issue this album…
Post By George in Dead Celebrities
I’m amazed at the number of prospective clients who have wills but don’t know the location of their signed, “wet ink” originals (either they don’t know where the document is, or they think it’s with the attorney-draftsman and they don’t know where s/he is). This is not a good situation – sort of like losing an album’s master tapes. If your executor can’t produce the signed original, that creates a presumption that the will was revoked, which can be an invitation to ugly, expensive, ongoing litigation (especially if a prior will is available).Wherever you decide to store your estate planning documents, be sure those-who-come-after will be able to find them!
Post By George in Dead Celebrities
Early indications are that the disputes surrounding Jacko’s children and riches will continue his legacy of entertainment for years to come… “Tsk!” you say, “That’s not a problem I’ll ever have.” Well, you may not own half the Sony music catalog or a closet full of un-matched gloves to auction, nor are you likely to name Diana Ross as your successor guardian, but it’s likely that you have (i) some assets and (ii) some family, and that’s where trouble starts… Stay tuned for occasional tidbits on my new favorite case: Estate of Michael Joseph Jackson.
Return to Main Site