Vol 110: IN THIS ISSUE

A Year of Tax Change?

Estate Planning Begins at 18

Home Safety for Elders
 
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Have You Wondered?

Have you sometimes wondered about how well-prepared you are for the future?

Many people have told us that their familiarity with estate planning and probate is limited; many more say their wills are not up to date and few are aware of the extent to which an elder law firm can simplify these processes.

Our website offers simple answers to these and similar questions. Or, please feel free to contact us if we can be of help in any way. 
 

2010 - A Year of Tax Change?

As everyone knows, Congress has been very focused on health care over the last six months or so. One consequence of this focus has been that Congress did not take action to prevent the temporary repeal of the estate tax.

As of January 1 of this year, and until January 1, 2011, there is no estate tax in effect. For the moment, at least, it would appear that the estates of people who die this year will not be subject to estate tax... but stay tuned.

For one thing, if this status remains unchanged, there will be no estate tax, but we will have to cope with what is known as modified carryover basis. Until this year, all assets passing from a decedent to beneficiaries were allowed to have their basis readjusted to fair market value as of date of death - very helpful in the case of appreciated assets. For 2010, this is not the case.

While there will be basis adjustments permitted (generally $1.3 MM, but $3 MM passing to spouses), beyond these adjustments, beneficiaries will take assets at their original basis. There is some confusion as to how the rules will be applied, and it is likely that many people will have trouble establishing the basis for some of their assets (such as their homes)

Another reason to "stay tuned" is that Congress may in fact act to re-establish the estate tax for 2010, and might try to do so retroactively. If they do not act, however, more change will be on the horizon because the estate tax will come back with a $1 MM exemption in 2011.

Existing trust documents may contain language which will have unintended consequences in the current environment. We recommend clients speak with their advisors about this, and we are happy to review documents with clients, and to recommend appropriate changes.

We are also keeping an eye on tax developments in New Hampshire. At the moment, there does not seem to be any movement toward reviving last year's discussion of implementing a New Hampshire estate tax.

However, there has been quite a lot of discussion, as most of you probably know, about the expansion of the interest and dividends tax to LLC entities.

We are following the story, and will keep you updated.
 

 
 
  Estate Planning Begins at Age 18

Your 18 year old "baby" has graduated high school, started college and has taken a semester abroad. In his travels your child can't access his bank account and someone needs to contact the bank for him. Unfortunately, in that situation you would not be able to access your child's account unless your child had provided you with the authority to do so in a Durable Power of Attorney for Financial Matters.

Even more importantly, your child needs a Durable Power of Attorney for Health Care. Your baby is now an adult, and as such, your child's privacy will now be respected by medical personnel. This being the case, if your child is hospitalized and decisions need to be made on his behalf and/or medical information needs to be accessed, it is likely that his doctors will not listen to you or provide you with that medical information unless your child has appointed you as his agent in a Durable Power of Attorney for Health Care.

We recommend that you encourage your child to speak with your estate planning attorney about preparing these documents. By doing this, your child can enjoy his college fun and independence and you can enjoy peace of mind knowing that in the event your child encounters a financial issue or is incapable of making decisions relating to his health care, you or someone else is authorized to speak for him.

Simple Steps... Making the Home Safer for an Elderly Family Member

We recently read a story in a California newspaper about a 90 year old woman who was trapped in her bathtub because she was too weak to get up. (She survived by drinking water from a rubber duck). This is a true story and it reminds us that there are simple ways to make a home safer for an elderly family member. Here are just a few.

  • Get a lifeline. These emergency response systems provide assistance around the clock
  • Make sure smoke detectors and carbon dioxide alarms are installed, especially in the kitchen
  • Buy small appliances that turn off automatically
  • Ensure that all rooms have good lighting with convenient and easy to use switches
  • Use nightlights near any night time traffic paths
  • Get a telephone with enlarged buttons; get a cell phone for your parent
  • Install grab bars in the bathroom and even a shower chair
  • Place anti slip rubber decals on the bathtub or exchange the tub for a walk in shower with a shower seat to prevent falls
  • Install a programmable thermostat
  • Eliminate throw rugs to avoid slips
  • Replace the faucets with single level handles for easier one handed control
  • Have a spare key in the event of a lock-out; or consider installing a keypad (easier to operate than sticky keys)
  • Encourage the use of deadbolts and a peepholes
  • Help unclutter the house and cabinets
  • Buy furniture that is easy to get up from

Curtin Law Office - 40 Bay Street - Manchester, NH - 603.669.7700
www.curtinlawoffice.com
 

 
   
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