On Thursday, March 26, 2009, Senate Finance Committee Chairman Max Baucus (Dem-MT) introduced legislation which would make permanent many of the tax cuts enacted by President Bush in 2001. The relevant Estate and Gift tax provisions of the legislation are as follows: Make permanent the estate, gift and Generation Skipping Transfers (GST) tax cuts; Reunify the gift tax and estate…
As part of President Bush’s 2001 tax reform package, the amount of the estate tax exemption (credit shelter) for 2009 has risen to $3,500,000 per individual. In 2010 there will be no estate tax and in 2011 the exemption will revert to the Clinton level of $1,000,000. President Obama has indicated that he will propose making the $3,500,000 exemption permanent.…
The limits on deferring income through contributions to retirement accounts have been increased for 2009 as follows: ************************Below 50 *******Age 50 and above********* IRA Contributions ————$5,000 ——-$6,000 Simple IRA Contributions -$11,500 ——-$14,000 401(k) Contributions ——–$16,500 ——$22,000 403(b) Contributions ——-$16,500 ——$22,000 457 Contributions———– $16,500 ——$22,000 In addition, the maximum deferral for Defined Contribution Plans and SEP/IRAs is $49,000, based on a…
In recognition of the significant decrease in the total value of many retirement accounts, Congress has suspended Required Minimum Distribution (RMD) from retirement plans for 2009. Normally, individuals, upon reaching age 70½, are required to withdraw annually from their retirement accounts an amount which approximates the total value of the retirement account divided by the individual’s life expectancy. (Life expectancy…
There are a number of reasons why the validity of a will might be challenged. The process can be highly contentious and the outcome depends on the specific facts of the individual challenge. An attorney can be of invaluable assistance to you in assessing the facts of the situation, weighing the alternatives and deciding how best to proceed. Sometimes a…