For those looking for some clarity on the future of estate taxes, the Obama Administration has proposed a unified credit of $3.5 million and an estate tax rate of 45%.  Though this has the same likelihood of passing as the Paycheck Fairness Act and the Buffett Rule (re: nil) and would require the Senate to pass a budget for the first time in 1,000 days, it is illuminating for two reasons.

First, it indicates that unified credit will not revert to $1 million as currently slated.

Second, it amplifies the exigency of making a large gift this year for those who can afford to give away $5 million.

As if getting members to share the details or their lives and otherwise sell their souls is not enough, Facebook now wants members’ body parts.  Actually,Facebook is encouraging its members to sign up to become organ donors.  However, in keeping with its minimal belief in personal privacy, the status would be shown on the member’s page.

People getting divorced need to change the beneficiary of their insurance policies. Most states provide that a former spouse will be considered deceased for beneficiary purposes, but bad results can still happen especially if the former spouses own insurance on each other.

Also, for new marriages a trust could serve as a vehicle for receiving insurance proceeds to benefit a new spouse, but have the proceeds pass to the children from a prior marriage.

Using estate planning documents to instill religious values in heirs can be difficult.  Although the Illinois Supreme Court has upheld a trust which disinherited grandchildren who did not marry within their faith, the better strategy for ensuring religious adherence is to discuss faith based issues with heirs over time and to live life accordingly.  Related, clients with a strong faith need to be careful when executing living wills and health care powers of attorney top ensure compliance with their beliefs.

Paul Daugherty of the Cincinnati Enquirer was gracious enough to allow me to guest blog again for him today.  Check out my ruminations on sports, OTR tours, and music, among other topics.