Good Estate Planning Article

The June 2009 edition of Money Magazine has a good article on Estate Planning issues facing older Americans. It basically discusses how current plans may not be adequate for upcoming possible changes to the Estate Tax regime.
Although the article suggests that Congress will likely extend the 3.5 million Estate Tax Exemption for 2010, it also suggests that Congress will likely be forced to lower the exemption back to something closer to 1 million dollars because of the fiscal pressure facing the country.

The article discusses the tradeoffs between lifetime giving and leaving stuff to people, as well as what types of assets are the best to give ( assets that have been beaten up in the recent market turmoil). Additionally, the article discusses the advantage of a bypass trust, particularly with the tax uncertainty. The article also discusses Charitable Remainder Trusts as a means of avoiding capital gains on appreciated assets and Grantor Retained Annuity Trusts, that may make sense in this low interest rate environment.

Finally the article concludes suggesting that estate plans need to be revisited when large changes occur to taxes and or personal circumstances. It suggests a re-examination of estate plans every three years or so.

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775 - 9774
http://www.twininglaw.com Read more On "Good Estate Planning Article"!

Estate and Gift Tax Rates and Exemptions 2009

Since I am often asked these amounts and rates I thought I would post to a document which contains the rates and amounts. Click here to access the pdf document.

The Estate Tax Applicable Exclusion Amount is $3.5 million for 2009.

This amount is also commonly referred to as the Estate Tax Exemption. This applicable exclusion amount is reduced by any lifetime gifting over and above the Annual Exclusion Amounts that make use of the Gift Tax Exclusion Amount.

This amount is per spouse to die in 2009. So assuming both spouses die in 2009 and an A-B or A-B-C type living trust was utilized the amount passing free of Estate Taxes can potentially double to $7 million dollars. As of this date Congress has yet to act on the Estate and Gift Tax rates and exemptions set to go back to 2001 levels in 2011 ( if Congress doesn't act).

The Gift Tax Exclusion Amount (currently at $1Million for 2009) is the maximum amount ( over and above annual exclusion amounts) that one can have given away in lifetime free of gift tax. The Annual Gift Tax Exclusion Amount is currently $13,000 in 2009. This means that one can make a gift to any person or persons for $13,000 or below and not incur any gift taxes and not reduce the Gift Tax Applicable Exclusion Amount.

ABOUT CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney, who offers in home services for busy and movement challenged clients. The Law Office of Christopher R. Twining serves the cities of Los Angeles, Santa Monica, Culver City, Beverly Hills, West Hollywood, Pasadena, Burbank and the neighborhoods of West Los Angeles, Westwood, Brentwood, Bel-Air, Pacific Palisades, Palms, Pico-Robertson and Encino. Dedicated to helping individuals and couples prepare comprehensive estate plans according to their wishes; he offers them these services at an affordable price, in the relaxed comfort of their homes. For more information about his services, please visit http://www.twininglaw.com or call (310) 492-5990.

CHRISTOPHER R. TWINING
LAW OFFICES OF CHRISTOPHER R. TWINING
1440 VETERAN AVENUE, SUITE 509
LOS ANGELES, CALIFORNIA 90024
(310) 492-5990 Fax (310) 775 - 9774
http://www.twininglaw.com Read more On "Estate and Gift Tax Rates and Exemptions 2009"!