Estate Planning, Probate & Elder Law Attorneys

» 4 deaths, 3 estate planning mistakes

What would you want to leave behind for your family? If your choices were A) a contentious mess, or B) a well-coordinated estate plan, you would choose option B, right? All too many of us end up with option A. In fact, a recent national survey discovered that only 44 percent of Americans have a simple will, much less a well-coordinated estate plan.

» 5 Things You Need to Know About the Estate Tax in 2010: #5 (2011 and on)

So where do we go from here? It's hard to know. If we're going to think in terms of what might happen, then we have to consider the following three possibilities:

#1: No action by Congress (no federal estate tax in 2010, but federal estate tax automatically comes back with a $1 million exemption in 2011 and thereafter);

#2: Prospective action by Congress (federal estate tax re-enacted for 2011 and thereafter -- and maybe for the rest of 2010 as well); and

#3: Retroactive action by Congress (so federal estate tax applies in all cases, even for 2010 -- obviously there's the retroactivity problem here).

If I had to guess, I'd say that #2 seems like the best possibility (maybe I should, but I'm not even including total repeal as a possibility). But even if that's the case, we have no idea what the re-enacted federal estate tax will look like. Will the exemption amount be $3.5 million? Or higher? Or lower?

The big question is, should any of this cause you to take action with respect to your documents right now? And my answer -- which I hate to give -- is, "I don't know." In a perfect world, you wait a month or so, we get some clarity on the estate tax, and then you have your documents updated. But what if that clarity doesn't come in a month or so (or ever)? Or what if you die during this period of uncertainty? Ultimately, I think everyone has to make the call on their own, depending on their situation and risk tolerance. The shameful part is that the very rich can afford to change their documents now, and then change them again and again. Can anyone else afford to do that?

» 5 Things You Need to Know About the Estate Tax in 2010: #4 (State Death Taxes)

Short post today, both because I've covered this issue fairly recently and because I'm dealing with a burst pipe in my basement.

The fact that there is currently no federal estate tax does NOT mean there are no estate taxes on the state level. The chart in this article is a must-see -- it lists all of the states with an estate or inheritance tax (or both), along with exemption amounts and rates.

» Tax Tricks For Kids
Here's how your bundle of joy can save you a bundle in taxes.

» Does Life Insurance Cover Death During Surgery?
Courts at odds over whether hospital mishaps are accidents.