In The News
HR4154 Passes House: Federal Estate Tax Exemption and Rate Permanently Unchanged
The House of Representatives voted on December 3, 2009 to permanently extend the current federal estate tax applicable exemption amount of $3,500,000, and retain the federal estate tax rate of 45%, for estates worth more than $3,500,000 [HR 4154]. It is anticipated that the Senate will not vote on a similar bill before year-end and that any change to the law will apply retroactively to January 1, 2010.
Annual Gifting Limitation for 2010
You may make annual gifts of up to $13,000 to as many individuals as you wish without incurring a gift tax. The filing of a gift tax return is not required. Married couples can make combined gifts of up to $26,000. Unlimited gifts are allowed for medical and educational purposes.
Changes to New York Power of Attorney Form as of September 1, 2009
Effective as of September 1, 2009, a revised form of Power of Attorney must be used in New York. Properly executed forms signed prior to that date are still effective and do not need to be updated.
Among other changes, the new form forces the attorney and client to address issues relating to gift giving, especially in the event of incapacity. A new “Major Gifts Rider” must be signed and witnessed in order to authorize gifts of more than $500.