Estate Planning

Approximately 70% of all Americans have no written estate plan. Of those who have done some planning, many only have a simple will or are depending on joint tenancy ownership to decide the distribution of their assets. Does this sound like you?

If so, your heirs will inevitably:

• End up in probate court, waiting months or even years for your estate to be finalized; and
• Spend up to 10% of your estate on court and lawyer fees

Wouldn't you rather make things easy on your loved ones? D'Angelo & Hashem can assist you in developing an estate plan now - so you and your heirs can relax and enjoy the things you've worked so hard to provide.

Don't stop planning yet

Unless you die in the year 2010, it is likely you will have to pay estate taxes if you die as one of this country's "wealthy" individuals.

The Economic Growth and Tax Relief Reconciliation Act of 2001 phases out the estate tax gradually every year, with increasingly larger exemption amounts (up to $3.5 million in 2009), until 2010 when the tax will be eliminated. However, according to current law, in 2011 the estate tax will be reinstated to its pre-cut rates - with an exemption of only $1 million.

Congress is firmly divided on this issue, so who knows what will happen. It's best to be prepared and have an estate plan in place.

FAQs

Do I need a Living Trust?

Many estate plans include a living trust. Living trusts allow you to:

• Avoid probate
• Reduce or avoid federal estate taxes
• Control how your estate is managed and spent after your death
• Ensure your wishes are carried out and not subject to attack
• Keep your affairs private and confidential

Read more about living trusts - click here to download a pdf file of our brochure, "Planning Your Estate Using a Living Trust"

Should I use a Charitable Remainder Trust?

If you have highly appreciated assets, such as employee stock options or real estate, you may want to include a Charitable Remainder Trust in your estate plan. With a CRT, you can:

• Receive a tax deduction
• Minimize income and capital gains taxes
• Allow interest on the investment to compound tax-free
• Receive a stream of income
• Benefit your favorite charity

Read more about CRTs - click here to download a pdf file of our brochure, "Planning Your Estate Using a Charitable Remainder Trust & Highly Appreciated Assets Such as Stock Options & Real Estate

What are the estate tax thresholds for Massachusetts?

The estate tax filing thresholds and exempt amounts for Massachusetts are not the same as those for federal estate tax purposes. The chart below applies to the estate of a decendent with no adjusted taxable gifts (Code 2001(b)).

Year of Death	Federal Filing Threshold and Exempt Amount	Massachusetts Filing Threshold and Exempt Amount
2003	$1,000,000	$700,000
2004	$1,500,000	$850,000
2005	$1,500,000	$950,000
2006	$2,000,000	$1,000,000
2007	$2,000,000	$1,000,000
2008	$2,000,000	$1,000,000
2009	$3,500,000	$1,000,000
2010	No tax	$1,000,000
2011	$1,000,000	$1,000,000