Legal Updates
Contents:- New Estate & Gift Tax Laws Are Now In Effect
- Medical Privacy Rights Law (HIPAA) Could Render Your Existing Powers of Attorney and Trustee Provisions Useless
- IRA and Annuity Beneficiary Rules
- The California Domestic Partnership Law Has Revolutionized the Law
A. New Estate & Gift Tax Laws Are Now In Effect
The recently-enacted 2010 Tax Relief Act amended the federal estate, gift, and generation skipping transfer tax laws for two years. The TRA may be especially relevant for your estate plan if:
- The value of your estate is greater than $1 million
- Your assets have appreciated substantially since you acquired them
- Your estate plan includes a bypass or credit shelter or A/B trust, especially if the trust was created primarily for tax-saving purposes, or gifting is an important part of your tax plan.
Please click here to learn about this important new law. We recommend you consult us if you have any questions on the application of the TRA to your own estate plan.
B. Medical Privacy Rights Law (HIPAA) Could Render Your Existing Powers of Attorney and Trustee Provisions Useless
The federal law known as the Health Information Portability and Accountability Act of 1996, or "HIPAA", has all but eliminated the right of your physician to give an opinion as to your competency, or lack of competency, without a detailed authorization signed by you and referring to the specific provisions required under the Act.
Without this form, your appointed decision maker, in many cases, would have to get a court order to act on your behalf under your power of attorney or living trust. This is a serious problem and could cost thousands of dollars in unnecessary legal fees and court costs. It is our opinion that everyone needs to execute a HIPAA form. If you would like more information about the HIPAA form, please contact us at 415-925-5200.
C. IRA and Annuity Beneficiary Rules
The laws regarding transfer and income taxability of IRAs and annuities at death have dramatically changed. If your estate has substantial tax-deferred assets we highly recommend review of your beneficiary designations to be sure you are taking full advantage of the new rules.
D. The California Domestic Partnership Law Has Revolutionized the Law
California's new Domestic Partnership Law grants legal status, benefits, and obligations to unmarried couples who register. It applies to couples of the same sex and to some heterosexual couples over age 62. This law creates, among other things, intestacy rights and property tax exemptions for qualified couples. You should seek immediate advice if you think this law might apply to you.
...Please contact us if you would like more information about changing laws and regulations.
Also, see our questionnaire to help you determine if you need to review your estate plan.