Hello [[First Name]]:
Welcome to
The Greenleaf Guide
February 2010 Newsletter |
|
Question
What is the current status of the federal estate tax?
Answer
Currently, there is no federal estate tax. Yes, you read that correctly. Should you die in 2010 with assets of $1 million, $10 million, or $100 million -- or more -- neither you nor your heirs will pay a dime in federal estate taxes.
However, under current law, this circumstance is for 2010 only. In 2011, the exemption is scheduled to return to $1 million, meaning that assets above $1 million that go to heirs other than a spouse or to charity will be taxed. The 2012 and beyond amounts are not known.
Congress began preliminary discussions in 2009 and several proposals were offered, including a return to the 2009 exemption amount of $3.5 million. However, further discussions are not on their near-term agenda, leaving estate-planning attorneys, financial planners, and individuals in a state of indecision.
We are reasonably sure that new rules will be in place before 2010 is over. Then, individuals and families can determine how best to accomplish their goals and preferences in terms of wealth management and asset transfer.
Keep in mind that individual states have their own tax rules and many states have estate or inheritance taxes.
For more about estate taxes, start with Nolo.com at www.nolo.com/legal-encyclopedia/estate-tax/ |
|
© Greenleaf Financial Group.
All rights reserved. Greenleaf Financial Group is a Registered Investment Advisor (RIA).
|
|
|
Love Your Spouse, Partner, or Family? Then Prepare Them
for Life Without You.
If you die today, will your loved ones be thrown into a state of worry and confusion? Or will they at least have the security of knowing about your savings, investments, insurance coverage, and end-of-life documents?
Emotionally coping with the unexpected death of a spouse, partner, and friend is bad enough. To minimize your family's accompanying financial fears, prepare a brief, financial outline. It is one of the kindest things you can do.
Either combine in a folder, list on a spreadsheet, or use your own method, but take an hour to prepare the following:
Assets and Insurance
Make a list of all investment accounts, types, and locations. If you're feeling ambitious, include year-end values and contact numbers, or include year-end statements in the folder.
Then, add life insurance coverage, including insurance through your workplace or via private policies. Show coverage amounts and basic details, such as the term period and an 800 number.
You need not include account numbers or details such as mutual fund holdings. The goal is simply to have an overview.
Contacts
Even if you keep a tidy filing cabinet, add a list of key professional contacts, such as accountants, financial planners, insurance agents, and attorneys. If you wish, add a note about the services they've provided.
Documents
Finally, add copies of wills, medical directives, trusts, and powers of attorney. Or, list the location of each document and the date it was prepared.
Deliver
Give this folder or list to your spouse, partner, and/or person(s) named as your executors. It may not be the most romantic Valentine's gift, but you may save your loved ones countless hours of worry and uncertainty. |
|
Unbiased advice
from an independent, fee-only firm.
Investment Management
Retirement Security Analysis
Investment Advice
Financial Planning
www.greenleaf-fg.com |
|
|
