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Philadelphia, PA 19102
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Suite 4300
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412.255.3767
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Westmont, NJ 08108
856.858.9499
Disclaimer
 Estate Planning Update Silverman Bernheim & Vogel As part of the Economic Growth and Tax Relief Reconciliation Act of 2001, beginning January 1, 2002, the federal Estate and Gift Tax was amended. The key amendments to those tax statutes were the increase in Exemption Equivalent for estate taxes to $1,000,000, with further increases scheduled to take place through 2009 after which the Estate Tax is scheduled to expire, and the increase in the lifetime exemption for Gift Tax to $1,000,000. A third significant change is to put into place scheduled increases in the Generation Skipping Transfer Tax exemption making it advantageous, in some cases, to use generation skipping trusts. The effects of these changes are significant because they will mean that married couples, with proper planning, can pass $2 million of accumulated wealth, or more, to heirs, with no federal Estate Tax. Just as important, the amendments may eliminate the need for some of the planning that was put into place under the more stringent tax schemes. Less burdensome planning may now suffice for clients whose accumulated wealth now falls, or with the increases in the exemption equivalent, will fall below the exemption equivalent. Credit shelter trusts, which were designed to funded with the exemption equivalent, may now be more than what is needed for optimal estate planning. The only way to determine the effect of the 2001 amendments on an estate plan is to meet and to explore the family as well as tax aspects of estate planning. Over the next several months we will be contacting clients to set up a time to review estate plans and to determine whether changes should be made to those existing plans. In the meantime, if you would like to schedule an appointment to review your existing plan give us a call. For more information contact Warren Vogel, Esquire Copyright 2002 by Silverman Bernheim & Vogel - All Rights Reserved. << Back to Article Index |
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