Contents:
A.
New Medical Privacy Rights Law (HIPAA) Could Render Your Existing
Powers of Attorney
and Trustee Provisions Useless
The federal law known as the Health Information Portability
and Accountability Act of 1996, or "HIPAA", has all
but eliminated the right of your physician to give an opinion
as
to your competency, or lack
of competency, without a detailed authorization signed by
you and referring to the specific provisions required under
the
Act.
Without this form, your appointed decision maker, in many cases, would have to get a court order to act on your behalf under your power of attorney or living trust. This is a serious problem and could cost thousands of dollars in unnecessary legal fees and court costs. To obtain more information about HIPAA, please contact us at 480-949-5297.
B.
Continual Changes in the Federal Estate Tax Exemption through
2011
The per-person federal estate tax exemption was raised in several steps from $625,000 in 1998 to $2,000,000 in 2006, 2007 and 2008. In
2009 the exemption
will increase again to $3,500,000. In 2010, estate taxes are completely eliminated, and
in 2011
estate taxes are
reinstituted with a $1,000,000 exemption (yes, all the
way back to $1,000,000!).
Because of the shifting nature of the exemption amount, your estate plan provisions should be reviewed to determine if they are still effective or necessary. We strongly recommend that couples who have Bypass, Residual or Exemption Trusts, in particular, review their estate plans. An unnecessary Exemption Trust could result in avoidable capital gains taxes and become an unfortunate administrative burden and/or financial hardship on the survivor and future heirs
C.
New IRA and Annuity Beneficiary Rules
The laws regarding transfer and income taxability of IRAs
and annuities at death have dramatically changed. If
your estate has substantial
tax-deferred assets we highly recommend review of your
beneficiary designations to be sure you are taking full
advantage of
the new rules.
D.
The New Arizona Domestic Partnership Law Has Revolutionized
the Law
Arizona's new Domestic Partnership Law grants legal
status, benefits, and obligations to unmarried couples
who register.
It applies to couples
of the same sex and to some heterosexual couples over
age 62. This law creates, among other things, intestacy
rights
and property tax
exemptions for qualified couples. You should seek immediate
advice if you think this law might apply to you.
E. New Arizona Trust Code that Came into Effect in 2009
You may remember when the Legislature passed the “Uniform Trust Code” in 2003. That new Code was to become law in 2004. Then the State Bar, and especially members of the Estate Planning Section of the bar, objected so strongly to the new Code, that the Legislature actually repealed that law just before it went into effect.
Wouldn’t you know, the Legislature wasn’t finished with it. They decided to make some corrections and amendments to overcome the objections submitted by the Estate Planning community. The new law is now the Arizona Trust Code instead of the Uniform Trust Code, meaning it differs in its content from most other states. You may have seen some newspaper reports about the new Arizona Trust Code.
The legislature left some objectionable portions of the code in this new law. But they did agree that you may choose to “draft around” some of the provisions which you find objectionable. This means you can actually add language to your trust which will change the result this new law will otherwise have on your own trust. To do so, you must amend your Trust Agreement. And you must amend it now.
Here are just some of the new law changes you should be aware of.
Please
contact us at 480-949-5297 if you would like more information about these new
laws and regulations.
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Phone: 480-949-5297 |
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