For those of you out there wondering just what is going on with the estate tax right now, here’s a good article by Kathy Kristof with a synopsis of what’s happening with the tax and what you might expect in the future. With these fluctuations in the estate tax, now is the time to plan your estate. If you already have a will, visit an attorney and review it to make sure your estate is protected for 2011!
Archive for the ‘Estate Planning’ Category
Estate Tax Update
Tuesday, March 9th, 2010Estate Tax: Will They or Won’t They?
Wednesday, December 16th, 2009Estate planners across the country are keeping an eye on Capitol Hill, where Congress is debating the future of the estate tax. The current estate tax exempts the first $3.5 million of assets from estate tax liability. In 2010 the estate tax will disappear completely, but if no action is taken the tax returns with a vengeance in 2011 at the much lower exemption rate of $1 million.
The current bet is that the 2009 rate with be extended at least for a year. Many in Congress would like to see the 2009 rate of $3.5 million per individual or $7 million per couple made permanent. A vocal group of Republicans would like to see the estate tax permanently repealed, but given their current minority status, that is unlikely. Here’s the latest from Bloomberg.com.
Th estate tax situation is obviously still developing, so stay tuned.
Ademption by Extinction
Friday, October 23rd, 2009A Will cannot bequeath property that the Testator does not possess. For example, if a Father decides to leave a house to his daughter by specific bequest in his Will, but then sells the house to someone else prior to his death, the bequest of the house to his daughter as contained in the Will is of no effect. This is what is known as Ademption by Extinction. See Welch v. Welch, 113 So. 197 (1927); Estate of Matthews, 791 So.2d 213, 218 (2001); Reddit v. Redditt, 820 So.2d 782 (Miss.Ct.App. 2002).
Ademption is a good reason to regularly review your Will and other estate planning documents, in order to ensure your plan will still be effective at your death. I usually recommend clients review their estate planning documents at least once a year.