The Planner - April 2009

4/8/09, 1:30 - 3:00 pm or 4/11/09, 10:00 - 11:30 pm, as part of American Heart Association Estate Planning Day
4/16/09, 2:00 - 3:00 pm Georgetown Office
4/22/09, 2:00 - 3:00 pm and 6:00 - 7:00 pm, Austin Office

4/23/09, 6:30 - 8:00 pm, as part of Financial Fitness Week, Austin Public Library, Carver Branch

4/30/09, 7:00 - 8:00 pm, as part of Waddell & Reed Estate Planning Night

Medicaid Workshops

4/8/09, 6:30 - 8:00 pm, Murchison Middle School

4/16/09, 3:15 - 4:15 pm, Georgetown Office

4/22/09, 3:15 - 4:15 pm and 7:15 - 8:15 pm, Austin Office

IRA/401K: The 5 Beneficiary Options

4/7/09, 6:30 pm - 8:00 pm, Westwood High School

Community Group Presentations
Ron Greening or Jeff Harris will speak at the following community events

4/9/09, 7:00 - 9:30 pm, Estate Planning for Families, meeting of the Child Care Professionals of Central Texas

Events for Wealth Planning Professionals:

Ron Greening will speak at or host the following events for Wealth Planning Professionals:

4/3/09, 7:00 - 8:00 am, IRA/401K: Beneficiary Protection and Predictability, Texas Society of Certified Public Accountants - Austin Chapter

4/21/09, 12:00 - 1:00 pm, Austin Office, CPA Lunch and Learn: Practical Applications of the Economic-Stimulus Package

4/22//09 12:00 - 1:00 pm, Austin Office, Interdisciplinary Lunch and Learn: Education Funding Alternatives

Greetings to you from the attorneys at The Greening Law Firm, P.C.

With all the worrying you've been doing about the economy, the stock market, and shrinking investments, have you given any thought to how your existing estate plan may be affected by all of this? The New York Times has, and what they've found is hopeful. Although estates may be smaller, there's now more room for flexibility, and if you play your cards right, more of your estate will end up going to your heirs rather than to the government.

So what does it mean to play your cards right?

Be specific about the distribution of your estate. Questions about your estate may lead to fights between family members. Being clear in your will or trust means fewer questions and fewer fights.
With the stock market so volatile, build flexibility into your estate plan.
Re-assess (and possibly re-title) how you hold your assets and take advantage of the latest exemption ($3.5 million per person, $7 million for couples in 2009 and scheduled to go to $1 million per person, $2 million per couple in 2011).

But the first thing you have to do is dust off your existing estate plan and take it to your attorney for review (a service we provide at no cost, I might add).

We stand ready to serve you!

Sincerely,

Ronald G. Greening

The Greening Law Firm, P.C.

What the Stimulus Bill Does for the Elderly

The American Recovery and Reinvestment Act of 2009, the $787 billion stimulus package that President Barack Obama signed into law February 17, 2009, includes a number of provisions that help the elderly in need as well as the economy. Here are the highlights:

A one-time payment of $250 in the form of a tax rebate to Social Security recipients, Supplemental Security Income recipients, and veterans receiving disability and pensions. For details, click here;
$87 billion to temporarily increase the federal Medicaid match to states (FMAP), which could help many adults who receive long-term care services through Medicaid. For details, click here;
An increase in the reverse mortgage loan limit to $625,500, from the former limit of $417,000, for the rest of 2009. For details, click here;
An additional $120 million for the Senior Community Service Employment Program (SCSEP);
An extension until December 2010 for the Qualified Individual (QI) program that pays Medicare Part B premiums for certain low-income Medicare beneficiaries. For details, click here;
$100 million for grants to states for elderly nutrition services, including Meals on Wheels and Congregate Meals;

For a link to the full text of American Recovery and Reinvestment Act of 2009, which is more than 1,000 pages long, go to: http://www.opencongress.org/bill/111-s1/show

Con artists have wasted no time in figuring out how to use the stimulus package to bilk Americans out of what little money they may have left. For a Los Angeles Times article, "Don't get taken by these stimulus scams," click here.

Time and Tide Wait for No Man,
It's Time to Update Your Estate Plan

If you are one of the thoughtful people who already have an estate plan you may be looking at the news stories about President Obama and his changes to the estate tax and wondering if it will affect your plan. "How long ago did I create my plan?" is the inevitable question we ask ourselves, "What has changed? Has it been long enough that I have to update it?" Well, we're here to tell you that if you have to ask the question then yes, it's time to update your plan.

You may think that your plan is simple, your assets haven't changed, and so changes in the estate tax law won't affect you, but as this article points out, it's not just changes in the estate tax law that can impact your estate plan. "A law change that inadvertently has affected some estate plans in recent years is the law protecting medical privacy (commonly referred to as HIPAA or Health Insurance Portability and Accountability Act). This law, while protecting your privacy, can be a problem if you become incapacitated, and someone who is supposed to act on your behalf cannot get the necessary information." Does your estate plan include an updated HIPAA? Ours do.

Inevitable life changes are another reason to update your estate plan regularly. These include changing friendships or family relationships, the births or deaths of family members, your own changing medical needs, and more.

It's not so hard to make an appointment with your estate planning attorney for a quick review of your plan and of changes to the law.And chances are that most years changes won't be sweeping but small, such as the inclusion of a HIPAA or the addition of a new grandchild. Don't let the passage of time render your plan obsolete.

The New York Times on Estate Planning Today

Here are a few articles published recently by the New York Times that you may find to be of interest.

Smaller Though It May Be, It's Time to Look at the Estate
March 20, 2009

Study Estate Plans Before Laws Shift
February 25, 2009

Estate Planning Is More Than Avoiding Taxes
December 30, 2008

Practice Limited to Estate Planning, Estate Administration, Probate, and Elder Law

506 West 15th Street, Austin, Texas 78701, 476.0888
1601 Williams Drive Georgetown, Texas 78628, 931.0888

The hiring of an attorney is an important decision. The items discussed in this newsletter are of a general nature and not intended to provide legal advice. Please consult with a qualified estate planning/elder law attorney to determine the best options for your personal circumstances.

In accordance with IRS Circular 230, the content of this newsletter is not to be relied upon for the preparation of a tax return or to avoid tax penalties imposed by the Internal Revenue Code. If you desire a formal opinion on a particular tax matter for the purpose of filing a return or avoiding the imposition of any penalties, please contact us to discuss the further Treasury requirements that must be met and whether it is possible to meet those requirements under the circumstances, as well as the anticipated time and fees involved.

To comply with the U.S. Treasury regulations, we must inform you that (i) any U.S. federal tax advice contained in this newsletter was not intended or written to be used, and cannot be used, by any person for the purpose of avoiding U.S. federal tax penalties that may be imposed on such person and (ii) each taxpayer should seek advice from their tax advisor based on the taxpayer's particular circumstances.