Wealth Preservation, Trusts and Estates

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Many wills and trusts are drafted to leave the maximum amount that can pass tax free to children or other heirs and the balance to the spouse. However, thanks to the failure of Congress to act, the estate tax has lapsed effective January 1, 2010.

This type of planning is especially common with our wealthy clients and also very common in cases where clients are in second marriages with children from prior marriages.

However, you should be sure to check your estate planning documents given this unexpected change. If the formula results in either too much going into trust, or in disinheriting a spouse, this will create undesirable results, and may result in numerous will challenges.

Click here to see the Wall Street Journal review of this important estate tax issue for married couples.

David M. Frees III - Trust, Estate and Asset Protection Planning Lawyer*
610-933-8069

* Note, that in Pennsylvania, there are no professional designations for lawyers. The use of the expression trust lawyer or related topics merely indicates that the lawyer or attorney focuses his or her practice primarily in those areas of law. As a consumer, it is important to ascertain the level of experience that the particular attorney has in any area of law including trust and estate planning, asset protection, and probate law, and estate and trust administration.

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David M. Frees III on The Federal Estate Tax Changes

** Attorneys Practicing in Probate, Trusts, Estate Planning Asset Protection Planning and Elder Law

More Important News On The Federal Estate Tax

There has been a flurry of activity in the House on recent Federal Estate Tax bills as the end of the year draws near and as the lapse of the existing Federal Estate Tax looks more and more like a real possibility. However, Representative Pomeroy has introduced a Federal Estate Tax bill HB 4154 that may be the subject of a vote as early as Tuesday, December 2, 2009.

In summary, this bill will make the exemption of 3.5 million dollars permanent and would not allow for carry over of the spouses exemption. This means that careful planning will still be be necessary for married couples for the foreseeable future and it will mean tax for many families (at a forty-five percent rate (45%).

This bill appears to be less favorable than the bill we discussed last week HB 3905. As you may recall from our blog post, HB 3905 would raise the exemption amount, reduce the tax rate, and increase the exemption through time to five million and then index it for inflation.

In any case, we are actively watching both bills and will keep you posted as they may have an effect on your estate planning.

David M. Frees III, Esquire

Call Donna or Denise at 610-933-8069 for a telephone or in person
consultation for estate planning, asset protection planning, trusts,
wills, or estate matters. Elder law consults are also available if you
or a loved one is facing nursing home issues within the next five years.

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