As many of you know, the Estate Tax law that exists today was established in 2001 and exempts estates with a value less than $3.5 from paying any Federal Estate taxes.  The Estate Tax was to be completely repealed in 2010 meaning no estate would be taxed regardless of size.  Then in 2011 the tax exemption would have fallen back to $1,000,000.  This structure obviously added a great deal of confusion and uncertainty to the world of estate planning.

My long-standing opinion had been that Congress would never allow the one-year repeal to take place because of the patently unfair nature of such a structure.  As more and more time passed without Congressional action however, doubt began to creep into my mind.

Well, yesterday (December 3, 2009) the House passed bill HR 4154 which extends the 2009 exemption amount through 2010.  The Senate is working on a bill that permanently extends the 2009 exemption amount, so we may actually see action this year afterall.   The House and Senate both have to pass a bill and any differences will need to be ironed out in committee before the Bill can be presented to the President to be signed.  Stay tuned.

UPDATE 12/21/2009:  Well I guess with the time spent on the health care bill, Congress could not get to the Estate Tax legislation, so it looks like we're in for a repeal on January 1st.  But the Wall Street Journal is reporting that: "Lawmakers already were promising Wednesday to revisit the issue early next year. One option is to pass a new tax retroactive to the beginning of 2010."

Stay tuned.

Drew is honored to receive this accreditation and is eager to continue to serve the brave veterans who call Wisconsin home.

"It took us 60 years to build this memorial and it is important that we get our heroes there to see it before it's too late." Drew says.

Old Glory Honor Flight, Inc. serves the northeast corner of Wisconsin from Fond du Lac, Manitowoc, Green Lake and Marquette Counties on the South to Lake Superior to the North, and from Lake Michigan on the East to the Wisconsin River on the West.

Veterans may download applications from the Old Glory website.  The organization is also actively seeking "guardians" to accompany the veterans on their trip, and obviously the organization is actively engaged in raising funds to support the mission.

Please feel free to contact Drew directly with any questions that you may have about this worthy cause.

Drew has made numerous appearance on local television to promote the new charity.

Here is a list of important issues that, if present in your situation, need to be addressed in your estate plan.  If you have any issue on this list, please feel free to call our office to discuss your options.

• Minor children - having minor children is a huge responsibility, and parents must have a plan in place as to how their children are to be cared for and by whom.
• Blended Families - When a couple each with children from prior marriages decide to get married, unique issues are created and special care needs to be taken to ensure that each spouse's plans are realized
• Special Needs Children - A child, or other beneficiary, with special health, physical, or educational needs equally special attention in the planning process.  Special features must be incorporated into the estate plan to ensure that the inheritance doesn't disqualify the beneficiary from any government benefits that they would otherwise be entitled to.
• Business Owners - One of the biggest shortcomings I see in an estate plan is the failure of many business owners to have a comprehensive exit strategy.  Careful planning is required to ensure the value of the business is maximized and that is transferred to the correct people upon disability or death.
• The Family Cabin - Many people have a desire to preserve the family fishing cabin or hunting land in the family for generations to come.  It is a very difficult task to accomplish without careful planning.  Many times, family property left to the kids is quickly lost to unrelated parties via, divorce, death, or bankruptcy.  A Family Cabin LLC or trust can help you accomplish your goal.
• Nursing Homes - Many people are worried that the assets they have built over the last 40 - 60 years can disappear in just a few years if the family is forced to spend $6,000 - $7,000 per month in a nursing home.  This is a valid concern and the earlier you address the issue, the better outcome you will achieve.
• Estate dominated by one asset - This occurs frequently in farm families and small business owners.  One asset comprises 80% of the estate; one child would like to run the business/farm, but the Will says everything is split evenly among the 4 kids.  How do you accomplish this without saddling the one child with a debt load that will make it impossible to run the business profitably?
• Large Estate - Most people have heard of the Estate Tax, but what is it and how can we avoid it?  The Estate Tax is a constantly evolving topic in the estate planning world and deserves special attention as it has often been referred to as a voluntary tax.  With careful planning for those families affected by the tax, many thousands of dollars can be saved for the family.
• Children at financial risk - Whether it's bankruptcy, divorce, incarceration, drug or alcohol abuse, gambling problems, health concerns, high-risk occupations, spending issues, or just plain irresponsibility, a carefully drafted estate plan can protect your children from their creditors and predators; it can even protect them from themselves!

Please feel free to contact our office to discuss any of these issues.

I am planning on using this area to touch on various estate planning-related topics that are being affected by recent events whether it be political developments, social trends or technological advancements.  Please check back periodically and feel free to contact our office if you wish to get more details about the various topics. 

Thank you and I hope this will become a valuable educational resource for my clients, colleagues, and the public at large.