Message from the Firm

By Michael B. Luftman

Times are changing; families are no longer the traditional one set of parents and their children, but often consist of blended families. We see a lot of multiple marriages and children from multiple marriages which can complicate creating an estate plan or altering an existing plan. David’s article touches on the dynamics of blended families and the rising popularity of terminating irrevocable trusts. An oxymoron for sure, but due to family issues, money and taxes, terminating or altering an irrevocable trust is possible.

While most of the country is feeling the psychological effects of the economy, many people are taking advantage of today’s low interest rate. Richard’s article focuses on various opportunities for high net worth clients to transfer wealth to the next generation. He discusses several strategies for reducing taxable estates.

The new year is around the corner along with the promise of change. On January 1st, the annual gift tax exclusion will be $13,000. This can mean considerable tax savings, over a period of time if used properly. As congress and the president start to act, we will be vigilant. However, we are relatively confident that there will not be repeal of the estate tax law. Rather, we feel that the exemption will be $3,500,000 or more. We may finally see portability where a spouse can give their exemption to their spouse for future use. Ultimately, the tax rate will probably be close to 45%. We will have to see what the future holds.

Learn more about R&R's related practice areas:
Tax, Estate Planning & Probate