Friday, February 18, 2011

Press Coverage of Estate Planning this Week (February 18, 2011)

Carla Fried of the New York Times reviews how the new estate tax laws affect lifetime gifts. Because federal gift taxes are now closely aligned with federal estate taxes, many parents will find that it makes sense to give gifts during their lifetime rather than provide an inheritance after their death. This is particularly relevant  during the next two years when the gift exemption is relatively high. See Estate and Gift Rules: Some Clarity for Now (Feb. 12, 2011).

Ashlea Ebeling of Forbes writes about states that have a separate estate or inheritance tax aside from the federal estate tax. The situation is constantly in flux, with states adopting or amending their estate tax laws every year. If you are planning on taking estate taxes into consideration when planning on where to retire, the advice is “prepare for the worst, and hope for the best.” See More States Want to Tax Your Estate (Feb. 15, 2011).

Christine Benz of Morningstar advises on steps to take regarding your IRAs in the context of estate planning. Recommendations include getting professional advice when naming beneficiaries, considering a charity as a beneficiary, and contemplating a conversion from a traditional IRA to a Roth IRA if you don’t expect to need the money during your lifetime. See Dos and Don’ts for Leaving IRA Assets to Your Loved Ones (Feb. 17, 2011).