EstateTax Planning News 12/09

IRS releases AFRs for December 2009:

Short Term: .69%

Mid Term: 2.64%

Long Term: 4.17%

The 7520 rate will be: 3.2%

For more information about Estate Tax Planning, visit us at http://www.donlonlaw.com

Big Changes in New York's Power of Attorney law

The recent changes in the law provide greater clarity and protection to clients. Key changes include:

• The new form must be signed and notarized by both the principal and the agent (the person named in the Power).
• The principal may appoint a “monitor” to review records of transactions by the agent.
• The agent has specific legal responsibilities, including a “prudent person standard of care.” He/she must maintain records of all transactions, and make them available upon written request.
• The law explicitly requires banks to accept the new Power and forbids them from requiring their own forms.
• The agent is limited to making small gifts (up to $500) unless the principal also signs a “Statutory Major Gifts Rider” which must be signed by two witnesses.
  

Old Powers (signed pre-Sept. 1st) remain effective despite the new law. However, you should consider executing a new Power to take advantage of these increased protections.

Both current and prospective clients are advised to call us immediately to discuss how this new law impacts your situation. Please review our website for more information or to schedule an appointment. 

Donlon & Associates, PC

IRS Issues AFRs for September 2009

The IRS has issued the minimum required interest rates for loans made in September 2009:

-Short Term (demand loans and loans up to 3 years): 0.84%

-Mid-Term (3-9 year loans): 2.87%

-Long-Term (9+ years): 4.38%

The Section 7520 Rate is: 3.4%

IRS Issues AFRs for August 2009

The IRS has issued the minimum required interest rates for loans made in August 2009:

-Short Term (demand loans and loans up to 3 years): 0.83%

-Mid-Term (3-9 year loans): 2.80%

-Long-Term (9+ years): 4.26%

The Section 7520 Rate is: 3.4%

IRS Issues AFRs for July 2009

The IRS has issued (Rev. Rul. 2009-20) the minimum required interest rates for loans made in July 2009:

-Short Term (demand loans and loans up to 3 years): 0.82%

-Mid-Term (3-9 year loans): 2.76%

-Long-Term (9+ years): 4.36%

The Section 7520 Rate is: 3.4%

AFRs (annual) for June are:

Short Term: .75%
Mid Term: 2.25%
Long Term: 3.88%

The Sec. 7520 Rate is: 2.8%

This is a slight rise from last month's rates.

IRS releases new mortality tables

These new mortality rates are effective for transfers on or after May 1, 2009.

A comparison of this new table (2000CM) with the old table (90CM) shows an increase in expected survival rates at almost all ages.

The new rates can be found on the IRS website, HERE.