Between now and 2012 the estate tax laws are subject to big automatic changes, and the most likely change is that they will be raised in order to help balance the Federal budget. Therefore, NOW is the time to take stock of your current finances and estate plan to take advantage of current law and to plan for probable increases when Congress revisits the law over the next several months. See the full article for details:

Estate Tax Expiration – Too Good to Last?

The Federal Estate Tax is set to expire between now and the end of 2011. Between now and then there are various provisions that tinker with the exemption limits. Considering the fact that the Federal government has to find a way to finance its 2009 stimulus spending spree and other programs that are on their agenda, it’s hard to believe that estates will escape Federal taxation for long. Even if the law remains unchanged, there is a good chance that your state has some kind of estate or inheritance tax.

Taking Advantage of the Estate Tax Exemption

Under current law, the estate tax exemption is $3.5 million, which goes down to $1 million in 2011. While the estate tax is scheduled to disappear for a year at that point, this assumes that the law will not be changed between now and then – and this is just too juicy a target for the current liberal Congress. This gives you a little time to take stock of your current situation, consult an estate planning expert, and either set up an estate plan or adjust your current one. There are perfectly legal strategies involving trusts, life insurance, and other ways to reduce the impact of Federal and state estate taxes. Just be sure to start by consulting an estate planning attorney rather than a life insurance salesman!

Do You have a Will?

It’s surprising how many people don’t even have a will. If you are married, have children, or have any concerns about how anyone else will be cared for after you are gone, a will allows you to direct the handling of these matters rather than having the court handle them according to state laws that prescribe how to handle the estates of those who die intestate (without a will). A properly drawn up will (generally coupled with one or more trusts) will greatly reduce delays, expenses, drama, and will reduce the impact of your passing on your loved ones. If you have minor children, a will is especially important – naming someone as a godparent doesn’t mean that they will become the guardian of your child if you don’t have a will.

Business Continuity Planning

What would happen to your business interests if you were disabled or died? Would there be such a break in the continuity of the business that it would have no value as an operating business? As a starting point, ask yourself when was the last time that you were able to take a vacation of at least 2 weeks where you did not have to make any contact with your business or professional practice, and what can you do to remedy that.

I know that I’ve raised some complex issues here and we’ll visit them again in future articles, special reports, and with the help of experts that are part of our faculty. Be sure you are registered at physicianentrepreneur.com to receive email updates.

I invite you to comment below with your questions and concerns. Remember that comments are moderated to maintain the professional quality of this publication, and that legal advice tailored to your personal situation should come from your attorney.