Posts Tagged ‘Estate Planning’

While Humboldt County residents should always periodically review their retirement plans and accounts as a part of their estate planning and business planning, now is a particularly good time to consider whether you should convert your traditional IRA into a Roth IRA.

As of January 1, 2010, a significant change occurred in the conversion rules for Roth Individual Retirement Accounts. The $100,000 adjusted gross income limit that has prevented many individuals from converting a traditional IRA to a Roth IRA has been lifted enabling all individuals to take advantage of conversion without any income or filing status limits.

(more…)

For years estate planners have been extolling the virtues of a revocable trust primarily to avoid the need for a probate of a decedent’s estate.   Now we have another reason to recommend a revocable trust to our client: the number of probate filing fees have significantly increased.

A provision of 2008’s Filing Fees legislation has significantly increased the number of probate filing fees for many probate proceedings.

(more…)

WHAT WILL THE FEDERAL ESTATE TAX EXEMPTION END UP BEING?

Estate planners (and their clients) would like to know what Congress is going to do with the Federal estate tax exemption.   For 2009, the estate tax applicable exclusion is $3.5 million ($7 million per married couple).   The estate tax rate is 45%.

As we near the end of a 10-year piece of legislation, if Congress does not act, there will be no estate tax in 2010 and the Federal estate tax exemption will be $1 million ($2 million per married couple) in 2011.

A recent budget proposal of President Obama and the House of Representatives would extend the current $3.5 million exemption and 45% estate tax rate.   In a narrow vote, the Senate passed an amendment to its version of the budget resolution that would increase the estate tax applicable exclusion amount to $5 million ($10 million per married couple).   It’s believed the Senate version of the budget resolution is not likely to be successful because it is not supported by the Democratic leadership.   Also, it is estimated that it would increase deficits by $91 billion in the first 10 years when compared with the cost of the President’s proposal. Tax Policy Center Table.

If you have questions regarding planning your estate to minimize the effect of estate taxes,  please contact our estate planning department.