Well its official. The estate tax will expire as scheduled on Jan. 1st. What will take its place? The congressional leadership is promising a renewed tax retroactive to Jan 1st.  The renewed tax will Reportedly be the same as 2009.  There will be a $3,500,000 per person exemption with a maximum rate of 45%.  But will this happen? If Congress does nothing the tax reappears in 2011 with a $1,000,000 exemption and a 55% rate. The Republicans are proposing a $5,000,000 exemption and a 35% top rate. Oh and by the way, the generation skipping tax expires and the gift tax rate drops to 35% also on Jan 1st.  Fun for planners and citizens as well. Flexibility is now more than ever the name of the game. There  are some opportunities but more traps in the mess. Woe to you if the tax is reinstated retroactive to Jan1st 2010 and a large estate has not planned for it.  A bigger problem will be if no change is made and smaller estates are now taxable. Stay tuned for developments.

When it comes to being irresponsible, everyone has an excuse.
It costs too much to save for a roof ,or I can eat this, my pants  feel loose
But when the time here is almost done can you look back and say
I’ve done all I can.  My plan is made.  I’m prepared, come what may
No excuses, now you must do what you can to leave a good impression.
Then your worldly wealth will flow to your heirs, not pay for my intercession.

How should a couple own their assets?  Should they be in one name or two?
It affects the estate plans and asset protection; the question is nothing new.
So I give people a lawyer’s answer when they ask, and say that it all depends
on whether avoiding taxes or creditors fits more with their planning ends.
But there is one dangerous asset which should always be held alone.
It’s the car you drive, transfer title today and stay away from the liability zone.

I see a lot of misconceptions about estate planning and what it means.  I met with a couple this week, who had “planned” their estate by putting their adult children on all of their properties.  They were concerned because one was getting married.  I pointed out that all of their children’s creditors had access to a portion of all the joint assets- everything the couple had except their homestead.  This well off couple was not aware of the intended consequences of joint ownership.  Everyone has their own unique fact pattern, so get professional help.

If your AC needed fixing you would call a repairman who knows
An air handler from a condenser and where each wire goes
But if you need an estate plan, its Office Depot or the internet
It’s too late when your heirs learn the old saying you pay for what you get
Wouldn’t you rather hire a professional who warrants his work for eternity
Hire an expert to do your estate plan right, and that expert should be me

So I always say, you need a Will, there’s one on the internet
But do you need a QTIP or QPRT and what does your six year old get?
If you screw up drafting the Will, everyone will know you cheaped out
Instead of a good last impression, the family will say what a lout
But a messed up Will has its bright side for me, it’s in probate
A poorly drafted plan turns into a very expensive estate.

When one thinks of probate which you probably never do,
Do your ears burn from the costs and all the time lost too?

There is a way around probate; a Revocable Trust is the Way
But commit your heart to do it and be a Trustee every day.
You must put all your assets in it then turn your mind to how
You saved your heirs months and many thousands, though it’s no “LAUGH IN” now.

So point the feet of all to my office who want to leave a good last impression.

I need your help because I refuse to participate in this recession.

I draft estate plans of all types and I do it for pay,

A good referral for me is anyone breathing who won’t always be that way.

I’m different from some other planners because I listen to what my clients actually say.

Everyone needs a plan to be prepared for their last day.