ISSUE #36

WILL THERE BE REPEAL OF THE ESTATE TAX
—AND IF SO—
WILL THERE NO LONGER BE A NEED FOR ESTATE PLANNING?

Predictions in general are, of course, dangerous.

Remember the prediction of Wilbur Wright who said, “I confess that in 1901, I said to my brother Orville that man would not fly for 50 years. Ever since then, I've distrusted myself and avoided all predictions.”

Estate Planning Lives!

No matter what happens with the estate tax, the need for estate planning is alive and well—since estate planning is not—and never was exclusively about saving or paying federal estate taxes.

Even if there IS “permanent” repeal, according to the positions of the candidates, repeal will not occur unless the next President is a Republican. And even then, given the state of the economy, a full and immediate repeal is very unlikely.

Here are some questions to ask yourself that would be relevant no matter what happens with the federal estate tax:

• At my death, will there be sufficient cash to maintain my family's standard of living, put my children through school, and keep up with inflation after paying off debts, administrative costs, and state death taxes? (If I haven’t checked, how can I be sure?)

• Do I personally have sufficient income and capital if I become disabled? At retirement?

• If I died today, will the assets I own pass outright to my spouse, children, and grandchildren, and are they mentally, emotionally, legally, and intellectually equipped to handle an outright immediate disposition? (Should I set up a trust or other management/investment device for them?)

• Have I stabilized and maximized the value of my business and other key estate holdings?

• Am I using my business or professional practice as effectively as possible to solve my personal financial problems and accomplish my objectives?

• Is there a better way to share, promote, and preserve my family values and encourage my children and grandchildren to carry on my ethical and philanthropic goals?

• Can I cut down my own income tax burden and pass more wealth and assure greater financial security for those I love?

• Do I have special needs such as a spouse who can't, or doesn't want to be bothered handling an investment portfolio, a handicapped or emotionally troubled child or grandchild, or a strong desire to “give back” to a specific college or charity? (Do I have a plan to make a “positive difference?”)

• What do I need to do to protect my loved ones from creditors, predators, in‑laws, and “outlaws”?

These are just a few of the ongoing issues involved in estate planning.

And they will continue to be important long after the estate tax issue is settled!

AS ALWAYS, FEEL FREE TO CALL TO DISCUSS THESE OR OTHER ISSUES OF IMPORTANCE TO YOU!

You may wish to access NEW information this month at: www.ashland.edu/estate and “click” on “Planned Giving” in the left hand column.

Our planned giving director, Paul Ditlevson, can be of tremendous service in helping you integrate your giving goals with your overall estate plan. He can also help you prepare to visit your attorney. You can reach Mr. Ditlevson by calling 419-289-5090 or by email to pditlevs@ashland.edu or regular mail at 401 College Avenue, Ashland, OH 44805.