Now is a Good Time to Consider Estate Planning
July 16, 2010 Leave a Comment
This week, George Steinbrenner, principal owner of the New York Yankees died. However, like much of his career it was not without a cloud of controversy. No, not that his death paralleled the All-Star game. Mr. Steinbrenner’s death was shrouded by mystique because his family will be able to retain all of his fortune. That is right George Steinbrenner, the consummate capitalist, even died at the right time. It has been reported that he even joked with his sons that “Now would be the perfect time for me to die.” Why, you ask? Because the Federal Government, due to a law-making fumble, allowed the 45 percent Estate Tax to lapse. The fumble allowed his heirs to save over half a billion dollars. The tax is set to reinstate in 2011.
The repeal of the levy was a quirk of President Bush’s 2001 tax cuts and became widely debated in Congress as the tax-free year of 2010 loomed. Many assumed that legislators would work out a compromise tax rate for 2010 but nothing was done to close the loophole. There has been recent debate in Congress about imposing a tax retroactively, but it’s unclear what the rate might be or how any back taxes might be levied.
The mistake on behalf of Congress will, at least for now, allow “The Boss’s” heirs to keep the Yankees. It is widely assumed that had the heirs been forced to cough up half a billion dollars, they would have had to sell Mr. Steinbrenner’s most valuable and prized asset, the New York Yankees.
With estate taxes in the lime light and at the forefront of media attention it may be a good time to seek some legal advice for your estate planning. Although we cannot, and will not, make any representations that we can save you close to half a billion dollars, we can insure that we utilize the laws as they are written to protect your assets.
If you do not have a will, no matter your age, it is time to see a lawyer so that you can sit down with them so that they may explain your options.
If Mom and Dad have not revised their wills recently it is time to see a lawyer so that the lawyer may explain their options.
Keep in mind that Estate planning is not just about wills. A lawyer can also draft a Power of Attorney, a document that grants power to a someone else to act on your behalf should you become incapacitated. Estate Planning also entails drafting health care directions, outlining what treatment you want in the future. These documents, along with a will, make it a lot easier for your loved ones in your future healthcare needs, your future financial responsibilities and, ultimately, once you have passed.
H Brian Dumeer
Cloutier & Cassella
29 Elm Street
Old Saybrook, CT 06475
(860) 388-3456 (p)
(860) 388-6374 (f)
bdumeer@celaw.org
