Still No Estate Tax – A Window of Opportunity for Lifetime Gifts in 2010

Thursday, August 19th, 2010

It’s August and, unbelievably, there is still no estate tax in 2010. We have seen large estates like that of George Steinbrenner, and other billionaires passing in 2010, avoid huge estate taxes. And unless Congress passes retroactive legislation those estates will have avoided estate tax and generation skipping taxes.  

We can’t imagine anyone wanting to die to take advantage of the current estate tax opportunity.  Fortunately, the current law also provides an opportunity to make large lifetime gifts in 2010.

Here are some reasons why making gifts now make sense.   

• The $13,000 annual exclusions and $1,000,000 gift tax exemption for gifts in excess of your annual exclusions is still in place.
• Right now the gift tax rate is 35% on amounts over the $1,000,000 exemption. This rate can be as low as 26% if the transferor survives three years from the date of the gift.  However, in 2011 the maximum rate is scheduled to go up to 60%.  
• As of now, there is no Generation Skipping Tax in 2010.  Gifts directly to individuals more than one generation below the transferor are not subject to the Generation Skipping Tax which historically has been as high as 55%.
• With the extremely low interest rate environment many gift strategies, such as charitable lead trusts and GRATs, result in lower gifts than in higher interest rate periods.
• Transfer values are lower with the depressed real estate values and stock markets. Closely held business interests are likely to be valued lower.

What is the downside?

• Estate and gift tax might be repealed permanently. However, this doesn’t seem likely in a period of budget deficits and the fact that transfer taxes in recent years affect less than 1% of the population.  
• If the transferor dies in 2010, no transfer tax would apply under current law and unnecessary gift taxes would have been incurred.  This can be avoided by using techniques which will make the gift incomplete until after the tax laws for 2010 are certain.

If you have questions about how you can take advantage of current planning opportunities, please contact John Anzivino at janzivino@kaufmanrossin.com or 305.857.6706.

John R. Anzivino, CPA, is an estate and trust principal at Kaufman, Rossin & Co., one of the top CPA firms in the Southeast.

Avoid Penalties for not Protecting Health Records: free seminar

Thursday, March 4th, 2010

The amendment to the HITECH ACT became effective February 17, 2010. If you are a healthcare provider or business associate and you don’t understand the act or haven’t taken the steps every organization must take to comply, then attendance at our upcoming seminar, Avoid Penalties for not Protecting Health Records, on March 25 is a must.

Privacy breaches are increasing at an alarming rate – which can bring litigation and financial penalties to healthcare providers. As of January 2010, there have already been 35 reports of breaches affecting 500-plus individuals, resulting in 712,000 notices. Most of the reports were electronic PHI contained in a lost or stolen unencrypted media or portable device. If you aren’t 100% confident that your organization’s current HIPAA policies and procedures have properly covered all the bases, then attending this seminar is recommended.

IN THIS SEMINAR YOU WILL LEARN

• Complying with the HITECH Act
• How to establish an effective information security program
• Best practices to assess third party providers
• Provisions to include in third-party vendor contracts
• Potential fines/remedies in the event of non-compliance or breach
• How to understand your notification requirements

WHEN & WHERE
Thursday March, 25th
8:00 – 8:30 a.m. (registration)
8:30 – 9:30 a.m.Kaufman, Rossin & Co.
2699 South Bayshore Drive, 3rd Floor
Miami, FL 33133

There is no charge for this private briefing. Breakfast and coffee is complementary. Seating is limited.

RSVP

You may register by calling Jorge Rey, at (305) 646-6076, or e-mail jrey@kaufmanrossin.com. If you have questions about the event, please contact Jorge as well.

Click here to Register

SPEAKERS

Jorge Rey, CISA, CISM
Director, Kaufman, Rossin & Co.

Jorge is responsible for managing and performing a variety of information security engagement for companies in the healthcare industry. He regularly assists companies address information security, privacy and compliance needs. He brings notable experience in IT risk assessments, IT Audits, network security and records retention. He is a Certified Information Systems Auditor and Certified Information Security Manager. He is president of the Palm Beach chapter of the Association of Records Managers and Administrators (ARMA). Jorge has been featured in numerous magazines and newspapers, including Healthcare Fraud, South Florida Business Journal, Miami Herald and Computerworld.

Luis Salazar
Partner, Infante, Zumpano, Hudson & Miloch

Luis leads the firm’s Privacy and Data Security Law Practice. He advises clients on best corporate privacy practices, developing and implementing data-retention policies, international and intercorporate data transfers, permission-based marketing, and compliance with data privacy laws and regulations. He actively advises health care institutions and business associates on HIPAA Security Rule issues, and Hi-Tech Act compliance. He is a Certified Information Privacy Professional and a Certified HIPAA Security Rule Auditor.

Luis is one of the most widely published authors in the areas of data privacy and security law. Luis was selected “Best of the Bar” by the South Florida Business Journal in 2003, a Legal Elite by Florida Trend Magazine in 2004 and 2005, a Superlawyer in 2006 and 2007, listed in The Best Lawyers in America, 2007, 2008, and 2009 Editions, and was selected for listing by Chambers & Partners USA Guide, 2007-201- editions.

Get back to basics to come out stronger

Saturday, March 28th, 2009

Drive down the street and you can’t miss the empty storefronts, more and more every week. If you wanted to find new office space, it’s a great time to negotiate an advantageous deal. Let’s face it, we’re seeing businesses fail all around us. Bankruptcy filings in the Federal courts were up 31% in 2008.

Better businesses can come through the recession, and even find opportunities to best competitors.   They’ll be stronger and in a better position to pick up market share.  Prudence dictates watching costs carefully, and getting back to basics.   What would you do if you were starting from scratch? (more…)