I'm not planning on going anywhere! Why is everyone saying 2010 is a good year to die?

Why 2010 May Be a Good Year to Die:

The Economic Growth and Tax Relief Reconciliation Act of 2001 provides that in 2010 the estate tax is repealed and there is no estate tax. Therefore, from a tax perspective, 2010 may be a very good year to die. But, we don't know for sure, as many experts expect Congress to act to prevent the repeal of the estate tax. This article written by Steve Hartnett, Associate Director of the American Academy of Estate Planning Attorneys spells out the process for getting a new estate tax measure passed in Congress and the impact of the delays.*

To read more about the current status of the estate tax follow this link to our website: 

http://www.handslaw.com/daURL/v5/global_cda.aspx?cid=9729&ctid=3177

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*Article compliments of the American Academy of Estate Planning Attorneys, By: Stephen C. Hartnett, J.D., LL.M. (Tax)

What is estate planning?

In its most basic form, estate planning is the process of planning for the management and disposition of your assets and resources when you are deceased or no longer able to manage your own affairs. While most people think estate planning is just worrying about assets or minimizing income and estate taxes, it is really much more. Estate planning is really about accomplishing your goals during your life and beyond.

Although many people share similar goals, the process of estate planning involves identifying your own specific goals. Once you identify them you can, along with your advisors, determine the best strategies to achieve them. Since people are different, this estate planning process will be very different from person to person.

*Excerpt from Love, Money, Control: Reinventing Estate Planning by Daniel O. Hands, Robert A. Esperti, and Renno L. Peterson

What’s in an estate?

Your estate is, simply, everything that you own. An estate consists of your investments such as stocks, bonds, mutual funds, annuities, bank accounts, and certificates of deposit; your retirement accounts such as individual retirement accounts and 401(k) plans; real estate; and life insurance policies. It also consists of your “stuff”- furniture, appliances, jewelry, collectibles, and all the other items of personal property. The value of your estate is the value of all these assets, less mortgages and any other debt.

*Excerpt from Love, Money, Control: Reinventing Estate Planning by Daniel O. Hands, Robert A. Esperti, and Renno L. Peterson

Isn’t estate planning just for rich people?

It’s not about how much wealth you have accumulated that’s important; it’s about what and who are important to you. Take as an example a widow with two grown children who has only a house and $200,000 from a life insurance policy on her late husband. Does she need estate planning to protect herself and her two children? To some people, $200,000 isn’t a lot of money. Even so, the widow wants to be assured that she can live in comfort in her own home. What if her son has an alcohol problem? Wouldn’t she worry that he will just drink up whatever amount she leaves him at her death? Wouldn’t she feel better leaving money to him in such a way that it could be used for his rehabilitation? It’s not whether you have an estate that requires planning, it’s whether planning will provide you with a sense of comfort and well-being about your and your family’s future.

*Excerpt from Love, Money, Control: Reinventing Estate Planning by Daniel O. Hands, Robert A. Esperti, and Renno L. Peterson