Monday, October 04, 2010 BridgeBuilder Introduces SuccessionPlan PLUS
Many of our clients and small business owners that we interact with are always wondering how to plan for succession or exiting their business. We continue to evolve and expand our services to meet the demands of our business, estate and tax planning clients. We are proud to introduce SuccessionPlan PLUS.
BridgeBuilder has developed SuccessionPlan PLUS, an innovative planning process used to assist family business owners in evaluating and accomplishing their succession planning goals.
You can begin today! If you would like further information as to how this process works, please click on the following link for our process guide.
SuccessionPlan PLUS
If you are ready to begin the Discovery process, please contact us to schedule your free Introductory Visit.
BridgeBuilder - Plans for Life Monday, April 05, 2010 What Kansas City metro area clients are asking about the Federal Estate Tax
At BridgeBuilder – Plans For life, we have spent a considerable amount of time working with clients from the Kansas City and surrounding metropolitan area on comprehensive Estate Planning. Many of those clients, including families, professionals and high net-worth clients are upset, confused and disgusted by the current situation with the Federal Estate Tax. Clients feel like they’re shaking a Magic 8 Ball, waiting for the answers to appear. So the questions come flying - hurling at advisors like objects in a 3-D movie! The truth is, Congress has left planners in a difficult position and planning for clients has never been more challenging. And though current law has left clients in a haze, I want to help burn off some of that morning fog and let the light shine down on where it is we stand.
So let’s get started with some of your most pressing questions:
1. How am I affectedby the current flux of the Federal Estate Tax?
This law can affect you in several ways. For married couples as well as single clients, we need to first make sure that your property will be divided according to your desires, and not dictated by Congress. For more than 50 years it has been common to use a written mathematical formula to divide the assets of a married couple when the first spouse dies to maximize estate tax savings. Likewise formulas have been used to provide funds for charitable causes and to benefit family and friends. Now, in 2010 when there is no estate tax, these formulas will not work. If a spouse is not your sole beneficiary (for example, if you have children from a prior marriage), the existing formula could result in the disinheritance or substantial reduction of resources provided for the surviving spouse.
2. What is the most likely outcome for the estate tax and when are we likely to see action?
Currently, the most likely scenario is a two-year patch of 2009 law ($3.5 million / 45%). Now that health care legislation is finished, maybe Congress will be able to focus on this issue. In fact, some of my colleagues recently attended an annual meeting where guest speaker and Chairman of the Senate Agriculture, Nutrition and Forestry Committee Blanche Lincoln (D-AR) commented that her primary legislative concern for 2010 was the estate tax.
3.Would an estate tax patch would be applied retroactively?
There is a big question mark around retroactivity, and as Congress continues to defer a decision on the estate tax – the later we get into 2010 – the more difficult it will be to reinstate the tax retroactively to January 1, 2010.
I believe that the potential for litigation would outweigh retroactivity, especially in an election year.
4.Are there other potential reform scenarios?
Another potential scenario is that repeal remains in effect throughout 2010, followed by a reversion in 2011 to the law in place in 2000, with a $1 million exemption and 55% top rate. This would certainly be a good start with the addressing the growing concern over debt and deficits.
It’s also possible that the Senate might address permanent estate tax reform. Although this scenario is unlikely, because of cost concerns, a crowded congressional agenda, and political pressures from upcoming elections, such an agreement would be at a higher exemption then $3.5 million and a lower rate than 45%. Please see our blawg “Estate Tax Limbo – A Political View” for further discussion.
5. What Should IDo?
We encourage you to meet with your advisor as soon as possible to review your estate plan and make any changes that are necessary for this law. This is a time that demands a new approach to your planning with new thinking and building in flexibility to see that your wishes are fulfilled no matter what Congress will throw at us this year or next.
Garrett L. Griffin
BridgeBuilder – Plans For Life Wednesday, March 24, 2010 Estate Tax Limbo- A Political View
Welcome back. In continuation of our conversation from last week, I wanted to touch on the politics surrounding this issue, and what better time than after the healthcare bill has finally been voted upon. Now Congress will have time to focus their attention on other matters, maybe even the estate tax (I am also laughing at this proposition).
So looking at both sides of the political spectrum you have the Democrats having incentive to do nothing since this law (discussed in last week’s blawg) was passed by a Republican Congress and signed by a Republican President, hence they have no responsibility for the insanity caused by the sunset. They will point the finger at the Republicans and say this all their doing.
The Republicans have no incentive to do anything because their position has always been the repeal of the estate tax because it saves the American people money, and saving the American people money always resonates. The Republicans will point the finger at the Democrats and say they had the opportunity to save the American people money by the complete repeal of the estate tax but choose not to.
The thing is that both the Democrats and Republicans know full and well that the estate tax “sun setting” back to a $1 Million exemption and a 55% tax rate will greatly increase revenue, something badly needed.
In what will be a significant mid-term election, many in Congress will likely use their position on the estate tax in an attempt to ensure reelection. There is the key word, “reelection”. You cannot blame a politician from wanting to be reelected, it is after all his or her job, and nobody wants to be out of work, but why does there always have to be all the finger pointing. Why can’t they just state their position, why they believe in their position and let the voters decide whom they agree with?
I have a theory. If anyone has ever seen the movie “Animal House”, there is a very funny scene when a young man has a difficult decision to make and a little angel and devil appear and give him advice. With politicians, I actually think there is a third character involved, the grim reaper. He is there to only give advice on how to save the politician’s job. You can picture it, can’t you? The politician trying to decide what he is going to say, and there on his shoulder is a little reaper whispering in his ear, “point the finger or your career is over.”
Who knows what is going to happen, but it will definitely be interesting to watch. Please share your thoughts and questions and we will be happy to address.
Jason Salinardi
BridgeBuilder- Plans for Life
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