How long has it been since you last reviewed your will, trusts, estate plans? 

Before you tell yourself of course a seasoned attorney would ask me that question, I want you to think about this – I’m a Baby Boomer too. We may think that we have all the time in the world to update and plan and we think that we are too busy making sure our children and family are provided for should anything happen.  Think again.

In a recent Forbes article, Five Reasons Baby Boomers Need to Review Estate Plans (And It’s Not About Taxes), http://www.forbes.com/sites/deborahljacobs/2012/03/29/five-reasons-baby-boomers-need-to-review-estate-plans-and-its-not-about-taxes/ senior editor Deborah L. Jacobs cited comments made by Paul G. Schervish, a Boston College professor and renowned researcher on wealth and philanthropy in America that was a little shocking, “Boomers will give away much more than they receive.” If that’s not a call to action to revisit your estate plans, I don’t know what is!

Do those documents still reflect who you are, what you care about and what you have today? Schervish tells us that it’s estimated that post-boomers, ages 28 to 45 are in better shape financially than we think and in fact, better shape than we were at that age.

As a boomer and an experienced estate planning attorney, I agree with Ms. Jacobs and Mr. Schervish - Take care of yourself and think about your legacy – the kids will be alright.

Boomers, tell me what you think!

With the New Year, come the NEW Federal Estate Tax laws. Congress has done it again. We now have new gift and estate tax laws for 2011 and 2012, but in 2013 the estate tax laws revert to the old laws: a $1 million exemption with a top tax rate of 55%. There are also provisions that retroactively change the federal estate tax laws for 2010.

It is interesting that Congress has not taken steps to "fix" the 2010 repeal of federal estate taxes, nor have they taken steps to increase the estate tax exemption for 2011 slated to be $1,000,000.  Meanwhile, the Obama Administration is attempting to provide some relief as to potential capital gains taxes on estates under $3,500,000 by providing an option to have the 2009 estate tax laws apply. 

Here is what they are saying:  Obama administration officials are considering a proposal to allow taxpayers to elect to apply 2009 rules to their 2010 estate tax bills, a Treasury Department official said in an interview that aired September 12.

This option could prove appealing to taxpayers who have inherited estates worth less than the $3.5 million estate tax exemption for 2009 but more than $1.3 million. The current law repeals the estate tax entirely but allows a basis step-up for only $1.3 million of the estate's assets, not for the entirety of the estate as under the 2009 law. Thus, heirs of decedents dying in 2010 may exempt only $1.3 million of capital gains when they dispose of the property and must calculate capital gains tax using the decedent's basis in the property.