BASIC UPDATES

The following is a list of some basic updates that have occurred over the years.  This is not meant to be a complete list, and if you feel that your existing documents do not include these updates, you should have your documents reviewed by a qualified estate planning attorney.

2004 - HIPAA Update:  More strict Federal regulations were enacted regarding the confidentiality of your medical information.  Recommendation:  Update your living trust, financial power of attorney, advance health care directive, and execute a new HIPAA authorization.  See information flyer.

2000 - Community Property Agreement Update: California law now allows married people to agree in writing that they own their community property in the "aggregate".  May be important for married people with AB type living trust and substantial value in their retirement accounts.  Recommendation:  Update your Community Property Agreement.  See information flyer.

2000 - ABC Trust Update:  For those married couples with ABC trusts, the IRS published specific requirements for making the QTIP trust (C trust) as the beneficiary of a retirement account).  Recommendation: Amend your ABC trust to conform with IRS rules.  See information flyer.

LAW UPDATES

One of the most watched laws relating to estate planning is the year 2010 issue.  On January 1, 2011, the federal estate tax exemption is scheduled to return to $1 million per person.  This year (2008) the federal estate tax exemption is $2 million per person.  In 2009, it rises to $3.5 million per person.  In the year 2010, the estate tax is repealed.  Yeah!  Not so fast.  What Congress gives you in one hand, they take away from the other.  Basically the federal estate tax is being replaced with a capital gains tax.  See information flyer.  This fact was not well publicized by the politicians.

What is unknown is whether Congress will pass a new law to prevent the federal estate exemption from returning to $1 million per person in 2011.  Anyone's guess.  Not knowing what lawmakers will ultimately do (or not do) in 2011 has caused much frustration to surviving spouses with AB Disclaimer trusts who have to decide whether to invoke the "B" part of their trust at the time of the death of the first spouse.  We'll keep an eye on this issue.  Are you optimistic?