ALERT:   CONGRESSIONAL MALFUNCTION

Because Congress failed to address the estate tax laws last year, the estate and generation-skipping tax laws have been repealed for one year.  This may eliminate estate tax liabilities for people dying during 2010, but it may also create substantial income tax liabilities under the new rules.  Unless Congress takes action in 2010, the estate taxes will return in 2011 (with even higher tax rates and substantially lower tax exemptions than we had in 2009).  Consequently, it is even possible that your assets may not go where you intended them to go under your Wills and Trusts.  During this chaotic time, we must address many planning issues.  It is imperative that you review your estate plan with your tax advisors as soon as possible.  We will provide additional information shortly.

What's New at Feld Hyde?

Feld Hyde shareholder Leonard Wertheimer served on the Alabama Law Institute's Power of Attorney Act Committee.  The committee completed a two year study revising and updating the state's Power of Attorney Act.  Full Article

Shareholder Kay Wilburn served as a team captain in the 2009 Susan G. Komen Race for the Cure.  She was listed as the third highest individual fundraiser for the Birmingham race, raising over $9,000 with pledges still outstanding.  Other "Pink Link" runners from the firm were Denise Vakakes and Amy Hudson.

Feld Hyde shareholder James Coomes made a presentation to the Estate Planning Council of Birmingham.  James presented on the topic "Captive Insurance Companies and the Closely Held Business" at the October meeting.  Full Article

Josh Watkins was elected as a member of the 2010 board of directors for the Homewood Chamber of Commerce. 

Special Needs Require a Special Needs Trust

If a person has a disabled family member who will require a nursing home, assisted-living facility or other long-term care after he or she is gone, the cost can be enormous. One option is to create a special needs trust that leaves as much to the family member as possible while making the most of government assistance. This article discusses the ins and outs of a special needs trust.
Full Article

Shelter Your Business Assets — Preserve More Wealth for Your Heirs with Asset Protection Strategies

Estate planning and asset protection go hand in hand. Most people concentrate their asset-protection efforts on insulating their personal wealth from frivolous lawsuits or other claims. But if a significant portion of a person’s wealth is invested in a business, it’s equally important to protect its assets from unreasonable or excessive creditor claims. This article explores asset-protection strategies.
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Trust your trustee — Choosing a Trustee Who will Carry Out Your Final Wishes

Avoiding probate is a common estate planning objective. One option to help achieve this goal is to establish a living trust, also commonly referred to as a “revocable” or “inter vivos” trust. A living trust allows the transfer of assets to the trust and provides instructions for the distribution of assets after the donor’s death. But it’s necessary to select a trustee to oversee and administer the trust at that time. There are specific duties a trustee must perform, and two types of trustees to consider
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Estate Planning Red Flag — A Minor is a Beneficiary of Your Life Insurance Policy

Most estate plans include one or more life insurance policies as a source of liquid funds and additional wealth. A common, but costly, mistake people make is to name a minor child or grandchild — or a legally incompetent adult — as beneficiary. Doing so can lead to several problems, as this short article describes.
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