Without further legislation, there will be no estate tax in 2010. The estate tax can erase nearly half of a wealthy person's estate, so for some time, the joke has been that 2010 is the time people should try to die. For families facing end-of-life decisions, the temporary elimination of the estate tax makes one of life's most trying episodes even tougher.
One potential moral dilemma already passed, and effected hundreds of families. What if a wealthy individual suffered a severe health setback that put them on life support near the end of 2009, and their health care power of attorney clearly stated that they do not wish to be kept alive in such circumstances?
What if we make it through 2010 without any additional legislation, which would mean that the amount excluded from the estate tax would drop all the way down to $1 million in 2011 (the exclusion amount in 2009 was $3.5 million)? Will people responsible for wealthy individuals who are clearly near death chose to take measures to ensure death in 2010 to avoid hefty estate taxes?
To avoid these difficulties, some individuals are putting provisions into their health-care proxies allowing whoever makes end-of-life medical decisions to consider changes in estate-tax law. Speaking to your estate planner may help save your family from making some of these difficult decisions during such a trying period.
For more information, visit http://www.utahfinancialadvisor.blogspot.com.
About Mr. Jefferies
Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning firm in Salt Lake City, Utah. He is a member of the National Association of Personal Financial Advisors (NAPFA) and a candidate for CFP™ certification. He possesses an MBA and bachelor's degrees in Finance and Marketing from the University of Utah. Lon writes articles for local magazines such as Business Connect and Utah Business Magazine, and he consistently contributes articles to online magazines such as FIGuide.com and FILife.com (by The Wall Street Journal). Additionally, Lon is a platinum expert author at EzineArticles.com. Lon has been quoted nationally in publications such as the NY Times and Investment News.
Contact Info
View Lon's blog at http://www.utahfinancialadvisor.blogspot.com, and visit Net Worth Advisory Group's home page at http://networthadvice.com. Lon can be emailed at lon@networthadvice.com, or phoned at (801) 566-0740.
