Wealth Preservation, Trusts and Estates

David M. Frees III It’s that time of year. New Years Eve approaches and it is time to make decisions, set new goals, and to make your new year’s resolutions. And, this year, more than ever, estate planning, updating your will, trust, and power of attorney should top the list.

This brief article will examine why 2010 estate planning resolutions and will updates are more important than ever, and how to make sure that this is one resolution you’ll actually keep.

First, the many laws related to estate planning and estate and inheritance taxes change regularly. For example, Medicaid – nursing home laws, estate and gift tax rules, and power of attorney laws have all changed recently for Pennsylvania residents.

However, this year there was also a major change, when Congress allowed, at the last minute, for the federal estate tax law to lapse. But, don’t take that too happily because it comes roaring back in just 12 months and that version may be worse than ever. And, to make matters worse, if your assets (including life insurance) exceed 1 million dollars, your estate planning documents might not even work properly.

So for the full story on who should revise their estate plan and why, as well as notes on how to keep this resolution, click here.

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Want to know about an interesting new Federal Estate Tax bill that might get traction in Congress and how you can track it on line? Read on.

A new federal estate tax bill was introduced in the House Ways and Means Committee on October 22, 2009. This bill, known as HR 3905, is called the Estate Tax Relief Act of 2009. While the fate of the federal estate tax is up in the air, this bill might actually stand a chance of getting out of committee as a compromise bill before the end of the year.

It is different than some of the other House and Senate bills. It would slightly raise the exempt amount for next year but will provide for increases thereafter in the exempt estate and also provides for phased reductions in the rate of the tax.

Unlike some bills, it does not address the idea of a husband or wife getting a carry-over also knownas portability of the first spouses exemption.

A review of the bill’s specifics:

The bill will repeal the lapse of the Federal Estate Tax as of January 1, 2010.

It would establish a $3,650,000 exemption equivalent in 2010 (more than the current $3.5 million).

The bill then gradually increases the federal exemption equivalent to $5,000,000 by 2019 and would adjust for inflation thereafter.

This bill also contains reductions in the top estate tax rates over time with continued decreases to 35% by the 2019.

Bottom line? This bill appears to address some of the concerns of both parties and may be a politically viable compromise. If passed and then passed in a similar form by the Senate, it would still require many families to do careful estate tax planning before the death of the first spouse to avoid the tax.

We will continue to keep you posted. And, you can read the bill and track its progress here. Federal Estate Tax News on HB 3905

David M. Frees III has law offices in Malvern, Phoenixville and West Chester
Pennsylvania. These offices serve all of Chester and Montgomery County, Lancaster Berks and
Delaware Counties.

Attorney David M Frees III can be reached by phone at 610-933-8069 or 610-240-0750

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More and more consumers are using Google, local search, and internet tools to help them to find the right lawyer to help with wills, trusts, estate plans and related matters.

But, there are many reasons why searching for “the best” trust lawyer, estate attorney, or probate lawyer could actually get you the wrong information and might actually yield just the opposite of what you’re looking for. For example, many consumer’s do not know that lawyers are not even permitted to advertise that they are “the best” in any given area.

Additionally, there are no recognized specialties in wills, trusts, estates or other practice areas in Pennsylvania. So if you cannot find a Pennsylvania lawyer who “specializes in estate law” or is “an expert in estate law,” then how do you find the right lawyer for your needs?

If you want to know more about how to really find the lawyer or attorney with just the right credentials who practices in the areas of trusts, wills, estate law, and related topics, then see this short report that I just prepared for Pennsylvania residents looking for a lawyer.

Finding The Right Lawyer or Attorney and Not Just “The Best”

Please leave any additional questions or comments below.

Thank you.
David M. Frees III, Esquire.

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