2013 VADA Family Convention October 16th Greenbrier Estate Planning Seminar By: John P. Dedon 1775 Wiehle Avenue, Suite 400 Reston, Virginia 20190 (703) 218-2131 [email protected] 2012 Law Highlights • $5 million exemption indexed for inflation • 40% estate tax rate • Gift opportunities remain…for now • • • Discounting Dynasty Trusts GRATs and Intentionally Defective Trusts 1 Estate Tax : Year Exemption Amount 2013 Forward: $5 Million gift and estate exemption: 40% tax rate Permanent? President’s Proposal Reversion to 2009: 45% rate & $3.5 M exemption beginning in 2018 2 Remaining Threats To Family Assets Potential Creditors 39.6% Income Tax IRS 3-6% Probate & Legal Expenses 40% 3 TAKE CARE OF BASICS Wills Revocable Living Trusts Advanced Medical Directives (Living Wills) Powers of Attorney 4 Other Fundamental Planning Issues • Children with creditor, financial, or marital problems • Children from a previous marriage and second spouse • Children with special needs (parents) • Spouse who would need help managing and investing funds – now or later 5 Probate Cost Time Delays Publicity Property In Multiple States Hassle Avoid Probate With Revocable Trust 6 Assets Retirement Liquid Insurance Closely Held Business Total 7