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Dear Friends:
FEDERAL ESTATE TAX
As you may know, the law providing for the $3,500,000 exemption from federal estate tax terminated on December 3, 2009. Currently, Congress has not yet enacted new law and there is no estate tax for decedent's dying in 2010. That law may soon change, however.
In December 2009, the House of Representatives approved legislation providing for an exemption from federal estate tax of $3,500,000 with a 45% tax on the balance. The Senate debate in early 2010 ended in a stalemate -- some advocating a $3,500,000 exemption and some arguing for a $5,000,000 exemption.
Congress has until September 30, 2010 to enact legislation that could be retroactive to decedents who die in 2010. At this time, we estate planners simply do not know whether Congress will act, or not.
In the event that Congress fails to enact new laws governing federal estate tax, the exemption will revert to $1,000,000 on January 1, 2011.
The maximum amount to be gifted during life (without paying gift tax) remains at $1,000,000.
AGENTS AND SUCCESSOR TRUSTEES
After practicing over twenty (20) years, solely devoted to estate planning, trust and probate matters, one obviously becomes much more knowledgeable. We have represented many families whose loved ones have died. We've learned much with this experience.
Circumstances in the future, due to health issues in particular, may require that the Agent appointed under your Powers of Attorney and/or the Successor Trustee of your Trust obtain legal representation to assist in the administration of your estate. Because this office may already familiar with both your wishes and your family, it is often appropriate -- as well as cost effective -- for this office to provide legal representation to your Agent or Successor Trustee.
You may authorize this office to represent your Agent under your Powers of Attorney and/or your Successor Trustee under your Trust, while acting on your behalf and in your best interests, due to your illness or incapacity.
If you have an interest in any of the above-mentioned issues, contact our office via E-Mail or telephone for an appointment.
This information is designed to provide a general overview with regard to the subject matter covered and may, in some cases, be specific to the laws of California. The authors, publisher and host are not providing specific legal advice to your unique situation. Always seek the advice of counsel in making decisions relating to your estate plans that may affect your family and loved ones.