-Special Report & Legal Bulletin
-Estate Planning
Checkett & Pauly is now on the web. Please look us up at http://www.cp-law.com/. While the Checkett & Pauly website does not play music or have cutting edge graphics, we have tried to make it interesting. More importantly, we have used this as an opportunity for wired clients to easily keep in touch with us through e-mail. Once on http://www.cp-law.com/ check "publications" and you can read this newsletter as well as those from previous years. If you click "personnel," you will see all of the smiling and familiar faces you have come to know at Checkett & Pauly, photographed one summer day in the bandstand at Carthage's Central Park.
President Bush pronounced from the outset of his campaign, and has never faltered, his earnest desire to do away with the estate tax. I have heard it said, and believe it true, the estate tax is the unkindest tax. After you have worked hard to get your assets, paid income tax on wages and salary, raised your children and paid your bills, paid tax on capital gains tax and dividends, the estate tax still remains. At the same time, we all recognize there is a social policy inherent within the estate tax. Congress decided, wrongly or otherwise, that an estate tax is necessary to provide equilibrium between social economic classes. Even with a more heavily Republican Congress, the last legislation on estate tax simply moved the exempt amount from $600,000 to $1 million, albeit over a period of approximately five years. While no one is safe in their person or property while Congress is in session, and none of us know what the future might bring, most estate planners do not believe it likely the estate tax will be eliminated outright, at least at anytime in the near future. For that reason, Checkett & Pauly continues to advise its clients to plan to avoid or reduce estate tax whenever possible and not to count on Congress to do the planning for you.
Fear of mortality. No one likes to tempt fate. Many of us do not wish to deal with the anxiety and awkwardness of planning for their own death. It is even more strained to have to talk to an attorney or, even worse, children about what happens upon death. One solution is to ask the family to meet together with you, your attorney, or financial advisor to put this all into context.
Perfectionism. Estate planning involves many choices. Unfortunately, there is never an absolute right or wrong, only a series of tradeoffs. No one knows what the future will bring, either in the financial markets or through Congressional legislation. However, the risk of life without a plan far outweighs the risk of having a plan which turns out to be less than perfect.
Strained Family Relationships. Sometimes in estate planning and, life in general, it becomes apparent all is not well at the home front. Just talking about what happens in case of death or incapacity perhaps may bring out family problems long but not far below the surface. Children who have not fought simply because they are no longer under the same roof, come to the forefront. It is still possible to resolve these conflicts. The best way is to have an open and frank discussion between mom and dad, and consider the most important family values and how to best meet them in an estate plan.
Procrastination. Some things are just easy to put off. Estate planning is probably even below going to the dentist. But any long journey starts with a single step. The best way is to call Checkett & Pauly or a financial advisor and simply set up an appointment. At Checkett & Pauly we provide a comprehensive questionnaire for each client to fill out. These worksheets narrow the issues and require the client to think very carefully about all of their assets, their family, and all choices to be considered.
It is not unusual to be worried about hurting the feelings of a child when naming one over another as executor of your estate. However, such a job can be long and difficult and has more than a little potential liability. You may be doing a favor for the child not chosen as executor. The personal representative (what we used to call an executor) has to act as a reasonable businessperson and complete at least the following:
The equity markets have experienced severe losses in the past twelve months. No one wants to say the "R word", but short-term growth is open to question. President Bush has proposed phasing out the estate tax over nine years. In this age when only uncertainty is certain, continued vigilance in your estate and financial plan is imperative.
Have any questions or concerns?
Give us a call. We're here to help.
The choice of a lawyer is an important decision and should not be based solely upon advertisements. This disclosure is required by rule of the Supreme Court of Missouri.
Neither the Missouri Supreme Court nor the Missouri Bar review or approve certifying organizations or specialist designations.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.
Copyright © 2008 by Checkett & Pauly, P.C. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.