Estate Planning

Estate Planning Still Needed
more challenging than ever

Estate planning is still needed, and is more challenging than ever.

Many thought that here in the USA estate planning would no longer be needed when Congress passed a new law in 2001 that gradually phases out Estate Tax until 2009 and finally repeals it altogether in 2010. Click over to Estate Tax to see exactly what the estate tax is, who actually pays it, and learn how it gradually phases out in the next few years.

Wrong!

Congress left in a nasty little time bomb. If Congress itself doesn't take further action, estate tax is reinstated in 2011 with the exemption at $1 million. In other words, the estate tax repeal will itself be repealed.

That uncertainty over what Congress might do means that estate planning is still necessary, and has to take place in three different scenarios:

1. Now to 2009. Exemptions rise from $675,000 in 2001 to $3.5 million in 2009;
2. 2010. Estate tax is fully repealed for this year;
3. 2011... what if...?
   • Congress does nothing - estate tax is automatically reinstated with only a $1 million exemption
   • Congress actually moves to make the repeal permanent. On April 27, 2005, the House voted to end the estate tax after 2010, but it is uncertain that the Senate will also vote to end, having blocked previous House efforts to end the tax.
   • Congress opts for something "in between" - keeping the estate tax but altering the rate of tax and / or the exemption amount.

So, how should one handle estate planning under these different scenarios?

Do you have questions about your organization? Don't have the answers - don't know who to ask? It's FREE to ASK THE EXPERT Estate Planning consultation. Reply within 48 hours. http://www.family-business-experts.com/cms-form.html

Flexible Estate Plan Needed

Concepts, Tools and Techniques of Estate Planning

Read our reviews of some of the concepts, tools and techniques that are necessary for estate planning.

Succession Management

Gift Tax

Wills and Trusts

Asset Protection

Family Trusts

Living Trusts

Living Trust Will

Revocable Living Trusts

Providing for A Child With A Disability

Special [or Supplemental] Needs Trusts

Charitable Remainder Trusts

Insurance Trusts

Family Limited Partnership

Retirement Calculators

Graphics can help professionalize your estate planning documentation.

Bottom line

Estate planning IS and will probably always be necessary.

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