Dear Friends

As you may already know, the federal estate tax rules changed drastically in 2010, and could change radically again in 2011. We want to advise you of what has happened and encourage you to review and re-evaluate your estate plan as soon as possible.
Congress passed legislation in 2001 that had the following results:
• The federal estate and generation-skipping taxes were repealed for one year commencing on January 1, 2010. The gift tax remains in effect with a $1.0 million lifetime exemption and a top gift tax rate of 35%.
• The step-up in basis rules (which gave a "fresh-start" fair market tax basis for most assets inherited from a decedent) were replaced with adjusted carry-over basis rules. These new basis rules permit a step-up in basis of up to $1.3 million for assets inherited by all heirs and an additional $3.0 million for assets bequeathed to a spouse.

If you, like many others, rely upon email, social networking, and e-commerce, you must give serious consideration to what will become of your accounts and how they will be accessed in the event of your death or disability. In such cases, internet service providers may require court orders to allow access to your family or have other burdensome documentation requirements. As a result, access to email accounts that provide billing notices and business communications and online bank and brokerage accounts may be unavailable to family members for lengthy periods of time following the onset of a disability or death.

Press release from American Bar Association

WASHINGTON, D.C., Dec. 18, 2009 -- The onset of a serious illness or injury can affect much more than a person’s health. Knowing what steps to take to get one’s financial and legal affairs in order is often vitally important not only to the affected individual, but to his or her loved ones as well.

The "Legal Guide for the Seriously Ill" -- a project by the American Bar Association Commission on Law and Aging commissioned by the National Hospice and Palliative Care Organization -- was designed for both the seriously ill individual and those caring for someone who is seriously ill. The guide explains “Seven Key Steps” in a brief, clear way while offering additional tips and resources for readers looking for more detailed information and guidance.