Changes in Estate Planning Law

One of the changes affecting estate planning is that recently the government eliminated the estate tax for the entire year of 2010.  Effective January 1, 2010, no federal estate tax or generation-skipping taxes are imposed upon persons who pass away in 2010. While at first blush this looks promising it is important to note that can be amended at anytime.

Both federal estate taxes and generation skipping taxes are slated to be reinstated in 2011.  There will be a $1 million exemption for generation skipping taxes and a maximum federal tax rate of 55 percent.  It is also important to be aware that the million dollar exemption is less than the maximum exemption was in 2009.  In 2009 there was a guaranteed a $3.5 million exemption.  The effect of these changes is that many more estates are going to be subject to estate tax in 2011.

For those who pass away before the end of 2010, their estates may not be given to their heirs free and clear.  Congress may have the ability to reinstate estate taxes for 2010, and may also make the taxes retroactive to January 1, 2010.  It is unknown what the rates will be should Congress go this route.

Changes to estate tax law can affect your estate plan.  Your best bet is to speak to an attorney that is skilled in estate planning law. An attorney experienced with estate planning laws stays up to date on changes that may affect you and your family. To maximize the amount your estate will pass to your heirs, and to minimize the amount that passes to the government, contact an attorney familiar with all aspects of estate planning laws.

A well thought-out estate plan is made up of many complex parts.  Your estate planner can prepare wills and trusts, including living trusts, life insurance trusts, charitable trusts, minor's trusts and other special-needs trusts as part of your estate plan. Your estate planning lawyer will also be able to advise you on issues of Medicare and Medicaid coverage, as well as how to preserve assets from catastrophic, long-term health care costs.

Help with estate planning law in Staten Island

The Law Firm of Lance P. Armstrong, an experienced Staten Island estate planning law attorney, can assist you all aspects of estate planning. Call us today at 888-721-2993 to schedule your free consultation.