THE CLOCK IS TICKING ...
NOT JUST FOR THE AFFLUENT

This past December, President Obama signed into law a new tax act that will likely provide you with real tax relief, assuming you take advantage of the new provisions by December 31, 2012.

We are meeting with many of our clients and friends to provide them information about taking advantage of this fleeting opportunity.

In summary, the new tax act:

• Imposes a maximum estate and gift tax rate
• Allows you to either gift or leave by way of an estate amount equal to $10 Million (up to $5 M per person)
• Dramatically increases the amounts you can leave your grandchildren

While the details of the tax act are beyond the scope of this letter, the act presents the chance to greatly enhance the amount you can shelter for your heirs.

We have developed approaches that can:

• Reduce (or in many cases eliminate) your estate tax expenses
• Enhance your existing estate tax plan
• Correct problems that may have occurred in your plan because of these changes

It is impossible to predict what Congress will do after 2012. It is our opinion, based upon many past indicators, that more permanent tax legislation will be unable to sustain the terms of the current act. It is for this reason that I take the time to reiterate this opportunity.

If any of these items are of interest to you, please call to schedule time to discuss and perhaps to revise your affairs accordingly.   -- Jim

PARENTS REPORT ATTITUDES ABOUT
GIFTING TO THE NEXT GENERATION

Bloomberg News reports that less than half of Americans say that leaving an inheritance is important, according to a survey by U. S. Trust.

"I think it is reflective of a lot of the Baby Boomer generation," said Keith Banks, president of U.S. Trust, the New York-based private wealth management unit of Bank of America Corp, the largest U.S. lender by assets. "I think they expect to live a lot longer and I think their first concern is, 'Am I enjoying the hard-earned wealth I created?'

Of the 457 individuals surveyed, each of whom said they had $3 million or more in investable assets, about 49% said that passing assets on to heirs is very important to them.

About 67% of those surveyed haven't told their children the full extent of their net worth, and 15% told their children nothing about their wealth. The average age of those surveyed was 61.

"There's a concern that if the kids are fully cognizant, it may start to influence how hard they work at their own careers," said Banks.

About 78% said that their children won't be mature enough to handle their inheritance until they are at least 30 years old, and 43% said their children need to reach 35 or older before handling their inheritances.

Doug Ketter, head of New York-based Morgan Stanley's private wealth management unit, said "In their own way, Baby Boomers are protecting their children to make sure they can live the life they hope they could live."

This above article represents the "space" in which we perform for our clients to make their heirs understand the true value of their wealth ... to clarify family values. Talk with us if this rings a bell with you.   -- Jim

"I arise in the morning torn between a desire to improve the world and a desire to enjoy the world. That makes it hard to plan the day." --E.B. White

"Life is a moderately good play with a badly written third act." --Truman Capote

"I think I've discovered the secret of life-you just hang around until you get used to it." --Charles Schultz

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