Estate, Gift, and Generation-Skipping Transfer Tax Exemptions Increase to $5,120,000 in 2012

The 2010 Tax Act provides that the estate, gift, and generation-skipping transfer tax exemptions are tied to inflation from 2011. Hence, the IRS has announced the estate tax exemption, gift tax exemption and even the generation-skipping transfer tax exemptions will increase to $5,120,000 effective January 1, 2012.

Of course, please remember that if the law does not change, the estate and gift tax exemptions will revert to $1,000,000 on January 1, 2013.

Portability of the Unused Estate Tax Exemption of Deceased Spouse

The IRS in late September announced how to take advantage of “estate tax exemption portability”. The “estate” of the deceased spouse must file an estate tax return. In other words, the estate must timely file an IRS Form 706 for the surviving spouse to receive an estate tax exemption not used by the deceased spouse. This will get interesting where a child or other family member of the deceased spouse is the executor and not the surviving spouse.  Also who is the “executor” if there is no probate?  Likely the successor in interest, successor trustee of living trust or whoever would have priority as personal representative if there were to be a probate.

It is also interesting in that it says no election needs to be made on the form.  The form just needs to be filed.  The problem is few decedents will need to file such a form.  Only needed if the estate is over $5,000,000.

The announcement is at http://www.irs.gov/pub/irs-drop/n-2011-82.pdf

By Kevin Staker

More Good Reviews of Take the Money and Run on ABC with Paul Bishop

The New York Times of all places has an excellent review of Take the Money and Run at http://tv.nytimes.com/2011/08/02/arts/television/take-the-money-run-begins-on-abc-review.html.  The reviewer, Jon Caramanica, says the show is “sometimes gripping” and is not so easy for the contestants to win.  In particular, he says, the interrogators, one of which is  Paul Bishop, are “worthy” and “have a flair for the dramatic.”

The New York Post has a good review of Take the Money and Run at http://www.nypost.com/p/entertainment/tv/hidden_money_3xD57tKw0Zta8etPjL2JzH.  The reviewer, Paige Albiniak, says Paul Bishop is a senior detective with the LA Police Department. Hanlon Stone is a deputy district attorney in Los Angeles. The two, who are also both novelists, have “honed the craft of interrogation over their years of working together.”

Read more: http://www.nypost.com/p/entertainment/tv/hidden_money_3xD57tKw0Zta8etPjL2JzH#ixzz1Tp9FbCMu

Also, Entertainment Weekly has an exclusive first five minutes of the premiere of Take the Money and Run, Tuesday, August 2nd, at 9/8:

Finally, you can find books by Paul Bishop, one of the stars of Take the Money and Run, at http://www.amazon.com/Paul-Bishop/e/B000APTEIY

Initial Reviews of Take the Money and Run on ABC – with Paul Bishop

A pretty good review of Take the Money and Run from Variety is at http://www.variety.com/review/VE1117945730.  They think the key is the Interrogators, one of which is Paul Bishop.  Paul is an excellent interrogator in real life with the police department.

Another good review of Take the Money and Run is at http://buzzerblog.flashgameshows.com/two-previews-of-abcs-take-the-money-and-run/.  They seem to like the format and editing of the show.

Please note the author page of Paul Bishop at Amazon.com is located at http://www.amazon.com/Paul-Bishop/e/B000APTEIY

By Kevin Staker

 

 

More on Take the Money and Run TV Series on ABC and Paul Bishop

We are down to one week until the premiere of Paul Bishop’s new TV series on ABC, Take the Money and Run.

The following are some additional sites regarding Take the Money and Run (TV series):

The bio page for Paul Bishop on the Take the Money and Run show website at ABC is at http://abc.go.com/shows/take-the-money-and-run/bio/paul-bishop/809938

Extra, the TV show, has a great clip regarding Take the Money and Run that shows quite a bit of Paul Bishop, http://extratv.warnerbros.com/2011/07/sneak_peek_abc_show_take_the_money_and_run.php

Just a reminder:  the author page for Paul Bishop at Amazon.com is at http://www.amazon.com/Paul-Bishop/e/B000APTEIY

The Wikipedia page regarding the TV series, Take the Money and Run, is at http://en.wikipedia.org/wiki/Take_the_Money_and_Run_(TV_series)

By Kevin Staker

 

Take the Money and Run – TV Series

This has nothing to do with California estate planning.  However, the best friend of this author, Paul Bishop, is one of the stars of a new reality game show on ABC, Take the Money and Run.  Take the Money and Run will premiere on Tuesday, August 2, 2011.

Paul is an author also.  His author page at Amazon.com is located at http://www.amazon.com/Paul-Bishop/e/B000APTEIY/ref=ntt_athr_dp_pel_1

Click here for the webpage for the show at ABC.

Click here for the bio on Paul at the ABC media website.

Click here for the Wikipedia page on Take the Money and Run.

Hopefully, Take the Money and Run will be a success for Paul.

By Kevin Staker

Changing Blog Back to Estate Planning in California

It was a pretty heady run for this blog when it was dedicated to the goings on regarding the estate tax in Washington D.C.  At times there were hundreds of hits per day.  The record was 1,225 on December 6, 2010.  The average the last week has been able 20 hits.

However, the estate tax is pretty stable, at least for the next two years.  However, please note apparently there is a glitch in the new statute re portability and a spouse remarrying and then  dying.

In the future, I will get back to reporting on estate planning developments in California.

By Kevin Staker

Social Security Information

The federal Social Security Administration (Social Security) runs the SSI program. The California Department of Health Services (“DHS”) runs the Medi-Cal program (called Medicaid in other states) under an agreement with the federal government. The Department of Social Services in each county, commonly known as the “welfare department,” administers the Medi-Cal program locally.

An SSI beneficiary receives support because the beneficiary is aged, blind, or disabled and his or her assets and income are low enough to meet a “means test”. The beneficiary must not have too many assets or too much income as discussed in detail below. SSI is intended to pay for the beneficiary’s food and shelter. The maximum SSI amount in California for an adult in an Independent Living Arrangement is $1,086 (in 2009). This is composed of a federal contribution of $674 and a state contribution of $412. Because SSI is a supplementary income program, almost all unearned income other than SSI will reduce the SSI amount the beneficiary is entitled to receive. If such outside income is big enough, it will reduce SSI to zero.

Community Talk

For all those in the area I am participating in a community talk in conjunction with the Ventura County Autism Society coming up on Friday, February 18th from 7:00 p.m. – 9:00 p.m.

The address is 900 Calle Plano, Suite K, Camarillo, CA 93012.

If you have any questions give us a call at 805-482-2282

2010 Tax Relief Act Now Law

It is over (except for the shouting and the gnashing of teeth).  The President signed the “The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010″. Reid and Pelosi not there; claimed too busy.  Truth: the President is a terrible negotiator and they know they blew it by not passing the tax provisions before the election.

However, it really is not over.  This is temporary for only two years. Hence, the debate can now begin on what to do for after 2012.

President Obama should, and may, frequently speak out for not extending the upper income tax cuts.  The Republicans will want to make permanent.

Personally, I believe they should not have been extended for anyone and certainly should not be extended beyond 2012.  We are borrowing money from our descendants to live beyond our means.  We should dramatically cut federal spending and allow the tax cuts to expire in 2013.  The Simpsons-Bowles Deficit Commission was a good start to the discussion.

Where are the leaders with the courage to stand for what is right? I believe this is true conservatism.  (sorry for the personal views)

By Kevin Staker