Now that the election is behind us and we have a Democratic President, House & Senate we can begin to speculate how this political climate will affect the estate tax or death tax as it is commonly referred to.
During the campaign there was much talk about eliminating the “Bush Tax Cuts” and “Redistributing the Wealth”. This leads me to speculate that the new administration and congress may return the estate tax to it’s prior levels of a maximum tax rate of 55% with a credit of only $1,000,000. This step would promote the ideas put forth in the campaign and provide additional tax revenue for all of these projects Mr. Obama wants to promote.
For the rest of us hard working entrepreneurs, it could mean disaster without proper planning. Lets first look at what’s included in the “Estate”: all of your assets, including real estate, businesses, personal effects, cash and accounts, and one people often forget, life insurance. For many of us it is life insurance that will put us over the top on estate tax. Ironically, life insurance is one of the best and easiest tools to combat this potential shift in the death tax. Through the use of Irrevocable Life Insurance Trusts we can reduce or eliminate the estate tax burden on our families. Please go to www.dickersonlaw.com/inforequest.html for more information on life insurance trusts. Or contact me at 956-791-5422 or by email jmd@dickersonlaw.com
November 10th, 2008
Lately I have been seeing and hearing about companies that will provide legal forms for wills, and business entities (like corporations and limited liability companies), but not legal advice. Hence the question, “Should you be your own lawyer?”
Legally any individual can represent themselves in court. In today’s impersonal fast paced world, people want to buy the thing to solve their problem. In this case a piece of paper that acknowledges that your business has paid the appropriate filing fee and the appropriate piece of paper with the State allowing you to transact business as a corporation of LLC. That is a small part of what I do for my client’s.
Yes I prepare that paperwork plus more paperwork that is needed for the type of entity that is recommended. This is where the Lawyering starts and the form filling stops. I get to know what my client’s business is about, what risks they face and what their tax position may be. Based on that information I make a recommendation on the type of entity they should form and why.
The same holds true with your will. You know who you want to get your things and the kids, but you may not know that there are alternative ways to transfer those assets that will protect your assets from liabilities your family may be subject to, including estate taxes. Additionally, when you deal with an attorney he/she can help you evaluate the best way to handle potentially problematic heirs.
In full disclosure, I have not actually seen any of the forms advertised so I am not commending on the quality of the forms or correctness of the form filling. Ultimately, it is a question of Value. Do you value professional advice, or do you just want a piece of paper?
Joseph Michael Dickerson
www.dickersonlaw.com
www.theroadmaptorich.com
August 20th, 2008
