Wealth Preservation, Trusts and Estates

The Grantor Retained Annuity Trust (GRAT) has

been an excellent and widely used federal estate tax savings tool.  However, President Obama took aim at the GRAT in his 2011 budget proposals.  Additionally, the House has included provisions targeting short-term and rolling GRAT planning tools in legislation that has passed at that level.  Although that particular House legislation has not made it through Senate, there is a significant amount of discussion and proposed legislation in the Senate that would require a GRAT to be for a term no less than 10 years.  This would not eliminate the GRAT as a planning tool, but would curb its use.   Read this recent Forbes article that outlines how the GRAT is used, how it is being attacked and how it will be used into the future.

Keep in mind that it is likely that the Federal Estate Tax will return in 2011 and we will need every resource available to help limit what could be a tax in excess of 45% for every dollar over $1,000,000 in an estate.  We encourage all clients and friends to keep their out for the final legislation of the federal estate tax system and to be ready to update estate plans accordingly.

Doug is a Partner with Unruh, Turner, Burke & Frees, P.C. which is a full service law firm with offices located in Malvern, Phoenixville and West Chester, PA. Doug can be reached at 610 933 8069 or at dkaune@utbf.com. The Law Practice serves Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).

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Your estate planning documents such as wills, trusts and powers of attorney require periodic review and updating.  Changes in your life circumstances such as a divorce necessitate modification of your estate planning documents.  Regardless of whether or not you created a will or other planning documents during your marrieage, you should have these documents prepared after a divorce.  If you do not, unwanted results may occur. For example, if you have young children and pass away after a divorce, your ex-spouse is likely to gain control of your children’s inheritance as guardian if you to not make necessary estate planning provisions.  You should also make sure to modify beneficiary designations on you life insurance, IRA’s, 401k’s, annuities and pension plans.  This will avoid any problems resulting from your ex-spouse still being listed as beneficiary after divorce.  Check out this article to review some of the other estate planning considerations after divorce.

Please contact Douglas L. Kaune, Esq. at 610-933-8069 or dkaune@utbf.com to discuss your particular estate planning questions and to determine the appropriate planning for you and your family.

Wills * Trusts * Elder Law * Probate * Asset Protection * Power of Attorney * Estate Planning
Unruh, Turner, Burke & Frees is a full service law firm with offices in Malvern, Phoenixville, West Chester and serving surrounding areas such as Collegeville, Wayne, king of prussia, Media, Exton, Downingtown and the following counties: Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia Pennsylvania (PA).

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