Brian Andrew Tully Says New Tax Law Lessens Financial Burdens On Estates

Dec. 21, 2010 - PRLog -- Huntington, NY — Attorney Brian Andrew Tully, Esq. says the tax bill that passed the House of Representatives and was recently signed into law by President Barack Obama will mean that estates will face a lower tax burden and be able to leave more of their assets to their beneficiaries.

On December 17, President Obama signed into law The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which will continue the tax cuts from the George W. Bush administration. The tax cuts were set to expire at the end of the year.

President Bush’s Economic Growth and Tax Relief Reconciliation Act of 2001 phased out the estate tax this year. Under those rules, the federal estate tax was set to spring back to 2001 levels, with a $1 million personal exemption and a 55% top tax rate as of January 1, 2011. The 2010 Act will set the personal estate tax exemption at $5 million per person (or $10 million per couple) and set the top tax rate at 35% for the next two years. In addition, there is a step-up basis and — for the first time — the estate tax exemption is portable between spouses.

“The 2010 Tax Act will allow more of the assets to go to the estate’s beneficiaries rather than the federal government,” Mr. Tully said. “Unfortunately, New York State still maintains the $1 million estate tax exemption, which means that state residents will still need to undertake estate tax planning so as to avoid or minimize the state’s estate taxes.”

Under the 2010 Act, the exemption on the gift tax will increase from $1 million to $5 million per person, retroactive to January 1, 2010. The law also gives estates the ability to opt out of the estate tax structure and choose the carryover basis rules, which have been in effect for this year. The unified credit for both federal estate and gift taxes is now $1,730,800.

“The increase in the gift tax exemption makes lifetime gifting a valuable planning tool in New York,” Mr. Tully said. “There will be much talk about the 2010 Act in the coming weeks. It is important, now more than ever, to develop an estate planning strategy to ensure that your loved ones will be taken care of financially and that it does not go to the government unnecessarily.”

A member of the Suffolk County and New York State Bar Associations, Mr. Tully is certified as an elder law attorney by the National Elder Law Foundation and focuses his law practice on life care planning, elder law, estate planning, Medicaid benefits and asset protection. Most recently, he was named to the Board of Directors of the Life Care Planning Law Firms Association. Earlier this year, he received accreditation from the U.S. Department of Veterans Affairs to represent and assist veterans and their spouses in the preparation, presentation and prosecution of claims for benefits, including the Aide and Attendance Pension.

In 2004, he founded the ElderCare Resource Center, Inc. (www.eldercareresourcecenter.info), whose mission is to be the community resource for support, answers and expertise in regard to advance planning and informed decision making about present and future long-term healthcare. The Suffolk Nassau Regional Business Partnership voted the ElderCare Resource Center as Educational Business of the Year in 2005.

For more information, call (631) 424-2800 or visit www.elderlaw.pro.


* A head shot of Mr. Tully is available via email and upon request.