Morris Hall, PLLC

Estate Planning Attorneys

MakePayment with multiple options
CALL NOW: 1 (888) 222-1328
  • Home
  • Our Firm
    • About Morris Hall
    • Attorneys
    • Our Team
    • Morris Hall Core Values
    • Communities We Serve
      • Arizona
        • Carefree
        • Flagstaff
        • Mesa
        • Oro Valley
        • Phoenix
        • Prescott
        • Scottsdale
        • Sedona
        • Tucson
    • Career Opportunities
  • Our Services
    • Asset Protection
    • Probate
    • Tax Planning
    • Trusts
    • Trust Administration
    • Wills
  • Resources
    • Blog
    • Do I Need an Estate Plan?
    • Elder Law Reports
    • Elder Law Resources
      • Phoenix Elder Law
      • Tucson Elder Law
    • Estate Planning Problems
    • FAQs
    • Probate Resources
      • Probate
      • Flagstaff Probate
      • Phoenix Probate
      • Sedona Probate
      • Tucson Probate
    • Published Books
      • Don’t Go Broke in a Nursing home
      • Tax Free Money for Long-Term Care!
    • Recent Law Changes and Improvements Affecting Arizona
      • Update My Living Trust
    • Reports
    • Videos
    • What to Do When Death Occurs
      • What Not To Do When Someone Dies
      • Who To Contact After A Loved Ones Death
  • Reviews
    • Testimonials
    • Review Us
  • Locations
  • Events
    • Seminars / Webinars
    • Past Webinar Recordings
  • Contact
    • Consultation Policy
    • Contact Us
    • Discounts

Is Your Trust Flexible Enough to Deal with the 2010 Estate Tax Law Change?, 2/18/2010

Is your estate plan set up to handle the current change in the estate tax law? In 2001 President Bush passed into law the Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA). Among many other things, EGTRRA made it so that the applicable exclusion amount from estate taxes increased from $1 million in 2002 to $3.5 million in 2009. In 2010 the estate tax is repealed and then beginning in 2011 the estate tax roars back with a vengeance.

It was thought that Congress would pass new legislation to ensure that in 2010 there would be some type of an estate tax in place. Due to the many other pressing issues Congress has been dealing with, Congress failed to act and has left us in a bit of a quandary as to what will happen in 2010 as far as the estate tax goes.

The following is a summary of the current state of the estate tax law for 2010 (unless changes by Congress occur):

  • There is no estate tax.
  • There is no Generation Skipping Transfer Tax.
  • With some exceptions, there is no step up in income tax basis on capital assets (for more details, please speak with an MH Attorney).
  • The Gift Tax remains in place. There is a $1 million lifetime applicable exclusion and a 35% tax rate for gifts in excess of the $1 million lifetime applicable exclusion amount. The annual gift exclusion amount remains at $13,000.

Many non-MH trusts are not set up to anticipate there being a repeal of the estate tax. While these trusts were fine when drafted, there may be some ambiguity during a year in which there is no applicable exclusion amount. Most likely, an improper funding formula could result in not funding the Family Trust. This could potentially cause catastrophic results to your estate and your surviving spouse. A review of your trust with one of the qualified estate planning attorneys of Morris Hall will discover the changes that can be made in order to avoid these problems.

If you are clients of MH and you have had your trust reviewed in the last three years, your trust is set up to handle these uncertain times in the estate tax law. If you have not been in to see us recently, we highly recommend that you come in to review your documents and make sure your trust is flexible enough to deal with these changes in the law.

MH logo

Main Office

7600 N 16th St, Ste 105

Phoenix, AZ 85020

Phone: 602-249-1328

Fax: 602-248-2887

Subscribe to Our Newsletter

For a sample Click Here

Offices

Our law firm proudly serves many areas in Arizona. See all of our locations here.

Our law firm proudly serves the state of Arizona.  See all of our locations here.

Toll Free: 888-222-1328

Mon-Thur: 8:00am – 5:00pm
Fri: 8:00am – 4:00pm

  • Linkedin
  • Twitter
  • Facebook
  • Youtube
  • Instagram

Need an Estate Planning Lawyer in Arizona?

Looking for an estate planning attorney near you? We have office locations in Phoenix, Mesa, Chandler, Scottsdale, West Valley, Carefree, Prescott, Sedona, Flagstaff, Tucson, and Oro Valley in Arizona so please visit us at the location that is closest to you.

  • © 2023 American Academy of Estate Planning Attorneys, Inc All rights reserved.
  • Disclaimer