Underestimating Exposure to Estate Taxation

Often people do not believe they are worth enough to be subject to Federal
Estate Taxation. If your estate is larger than $1,000,000, the estate tax
begins at 41 percent! It is common to hear a person undervalue real estate,
especially in this portion of the country (Bergen and Passaic counties in
New Jersey rank as the 6th most expensive residential areas in the United
States, with 20 percent appreciation per year). Also, life insurance, IRA’s
and the value of your business must be considered.

Not Balancing Ownership of Assets

Too often people own most of their assets jointly. At the death of the first
spouse, all
assets pass directly to their surviving spouse. If all assets are held
jointly, one Unified Credit may be lost—that’s a $345,00 loss and mistake!
Choosing The Wrong Executor or Trustee

Frequently a person wants to choose a friend or family member. The jobs of
Executor and Trustee are very critical; numerous fiduciary obligations must
be performed, and performed correctly. Is your chosen fiduciary competent
and willing? More importantly, the person appointed to a fiduciary position
should be asked??
Wrong Beneficiary and Distribution Elections of Retirement Plans

A retirement plan is subject to estate taxation (when the unified credit is
met), then the remaining funds are subject to Income Taxation; this could
represent a 50 percent Estate Tax exposure in addition to a 38.6 percent
Income Tax. Please review the website “Article“ published May 14, 2001
addressing IRA Income Distribution Rules.

Owning Life Insurance

Many times people purchase life insurance “dedicated” to pay estate
taxation. While this may represent a wise method of “paying the bill”, too
often people fail to realize that the same life insurance will be subject to
estate taxation. If the life insurance proceeds become an asset of the
estate, the same life insurance intended to “pay the bill” just increased
the bill. Also, having the life insurance policy owned by the other spouse,
results in keeping the policy proceeds out of one estate while assuring that
the proceeds ARE INCLUDED in the surviving spouse ‘s estate and therefore
subject to Estate Taxation. The best method of assuring that the proceeds
are not included in the estate of either spouse is the use of a “third
party”—a Life Insurance Trust. An Irrevocable Life Insurance Trust can
provide for the “other spouse”, pay estate tax bills, and provide for
beneficiaries without any Estate Taxation.
Lack of Estate Planning Documentation

Not addressing the subject of Death or Disability, or perhaps
procrastination, results in not having the necessary documentation, this is
exactly what the IRS wants, 70 percent of the people in this country die
without a will!! Too often the estate planner prepares the Trust but it is
never funded. The estate plan should include, but not necessarily be limited
to, the following documentation: Will, Trusts, Durable Power of Attorney,
Health Care Proxy. As an estate becomes more complex, or if the desire is
to aggressively remove assets from Federal Estate Taxation exposure,
additional documentation may be required, possibly the use of a Qualified
Personal Residence Trust would be appropriate.
Lack of Liquidity

Whether federal or not, every estate will have some expenses to honor.
Providing liquidity for the estate can be accomplished in many ways; a
frequently used method of generating liquidity is the life insurance policy,
sometimes the “second to die” policy is appropriate. Unfortunately, the
estate plan that does not address this issue results in liquidation “sale”
of perhaps the wrong assets within the nine month “window” to settle the
estate and file the Estate Tax Return.

Loss of Tax Credits and Gifting
Too many people do not realize that an UNLIMITED amount of gifts can be made
every year up to $11,000 per recipient. This gifting ability is in addition
to the utilization of the “unified credit” or “exemption amount” that
permits the transfer of $1,000,000 without estate tax or gift tax
consequence during the calendar years 2002 and 2003. The “exemption amount”
or “unified credit” can be used either during life or at death. Remember
however that taxable gifts made within three years of death will be
“returned” to your estate and taxed accordingly.
Need for a Master Plan, and Keeping it Current
Stale documents are dangerous! Unfortunately, stale documents cost too much
in tax dollars. It is wise to have your estate plan reviewed every two
years, as well as every time the estate tax laws change—REMEMBER OUR PRESENT
LAW CHANGED JANUARY 1st OF THIS YEAR!! Also, it is wise to review your
estate plan as changes occur in your health as well as family life; a change
of intention means a possible change of documentation. When “changes” occur
which are not addressed in estate planning, the wrong person “inherits” the
wrong property, and this can lead to very expensive litigation.
Courtesy of: Steven W. Tarta, Attorney at Law. 45 N. Broad Street Ridgewood, NJ 07450 PHONE 201-444-8448 E-MAIL: TARTALAW@ATT.NET Fax 201-612-0827Please be sure to check out www.tartalaw.com for estate planning learning center information.

Your fiduciary is an integral part of your estate plan. Who should you appoint to coordinate your affairs upon incapacity or death? Consider these questions when making the selection:

What are the responsibilities of my fiduciary? The fiduciary you select should be capable of handling the responsibilities of the appointed role. Personal Representatives and Trustees are charged with the duty of gathering your assets, satisfying your liabilities and distributing your estate among your beneficiaries.

In safeguarding your assets, fiduciaries must make prudent financial decisions. The complexity of such decisions depends upon the nature of your assets. For example, a closely held business is a more difficult asset to manage compared to a portfolio of marketable securities. Select a fiduciary knowledgeable enough to handle your specific assets.

How long will my fiduciary be required to act? The Personal Representative’s role (Executor/Executrix) is a short-term one, while that of the Trustee is long-term. A trust can last for many years and span several generations.

It may be sufficient to name a certain fiduciary as your Personal Representative due to the limited nature of that role, while another fiduciary may be better suited to act as your Trustee.

Who are the beneficiaries of my estate? Are there any special family circumstances to consider?

Your family dynamics can impact your fiduciary selection. Your fiduciary must be able to communicate effectively with your beneficiaries. Your fiduciary should also show fairness and impartiality when beneficiaries have conflicting interests. If you foresee potential conflicts among beneficiaries, it is wise to select a fiduciary immune to such tensions. Consider the potential difficulties you may impose upon a neutral family member or friend.

Will my fiduciary charge a fee for its services? If you appoint a professional fiduciary, review their fee schedule carefully. Family members or friends sometimes forego taking such fees, also, these fees are subject to income taxation.

What personal considerations do I have for selecting my fiduciary?

The selection of a family member or friend as your fiduciary may be tempered by personal goals. Do you wish to give your spouse an important role in the handling of your affairs? Do you wish to show your confidence in your child’s abilities?

An estate plan is designed to express your personal wishes, and your fiduciary selection can reflect those wishes as well. However, personal considerations should be weighed carefully against other relevant factors.

Consider appointing a family member or trusted friend as a co-fiduciary to act with a well suited individual or professional fiduciary.

Is my selected fiduciary willing to serve? Most importantly, determine if your selected fiduciary is willing to serve as such. The task of a fiduciary can be complex and time consuming. Your fiduciary should be willing to undertake the responsibility of handling your affairs. Discuss the appointment with your chosen fiduciary. A begrudging Personal Representative or Trustee does not make the most effective fiduciary.

An Overview

The Qualified Personal Residence Trust (often referred to by its acronym, “QPRT”) can be an effective estate planning technique for a high net worth individual. The concept is simple: the owner of a personal residence transfers it to a trust, but retains the right to live in the residence for a specified period of years. At the end of that period of years, the children (or other designated beneficiaries) become the owners of the residence. Thereafter, the residence will no longer be a part of the former owner’s taxable estate.

How This Technique Works

The tax advantage of the technique comes primarily from the way in which the value of the gift to the trust is calculated. The value of the gift is not the value of the residence on the date of the gift. Instead, the gift is only the value of the children’s right to take possession of the residence at the end of the specified period of years, which can be far less than the current value of the property. For example, a $1,000,000 home can be gifted to a QPRT, removing $1,000,000 from the grantor’s taxable estate, but the taxable gift may be as little as 10 or 20 percent of the value of the residence. By keeping the gift tax value of the QPRT transfer below the $675,000 in 2000 and 2001 exemption from federal gift tax, the grantor can avoid paying federal gift tax on the gift. If the value of the residence is so large that even the reduced value of the transfer to the children would trigger a gift tax, the use of the QPRT will still be valuable and the payment of the gift tax may actually prove to be advantageous. Any gift tax paid now will reduce the estate tax due at death, provided the grantor lives at least three years after the tax is paid. Although the concept of a QPRT is simple, the decision to created one should not be made without a fairly complex tax calculation to determine the value of the taxable gift which will be made. This value is a function of (i) the age of the grantor; (ii) the number of years during which the grantor will retain the right to occupy the property; (iii) the current appraised value of the property; and (iv) the current IRS actuarial tables and interest rates used to calculate future values.

The QPRT trust document may contain provision such as these:

A. The Grantor could be the sole Trustee of the QPRT, and make all management decision.
B. The QPRT would continue for a specified number of years, after which the property could be transferred either outright to the children or in a further trust for their benefit. The number of years that the QPRT is designed to continue requires careful thought since the tax benefits are lost if the grantor dies before the QPRT ends. A longer trust term increases the tax advantages, but also increases the risk that premature death will erase those advantages.
C. During the term of the QPRT, the grantor would be entitled to all rights of occupancy, and would be responsible for all costs of maintenance.
D. If the residence is sold during the term of the QPRT, another home can be purchased. If a replacement home of equal value is not purchased, the unused cash proceeds must either be distributed back to the grantor (thus forfeiting the tax benefit), or the cash must be invested and the grantor will be paid an annuity for the balance of the QPRT term (thus reducing, though not necessarily entirely eliminating, the tax benefit), after which the remaining trust assets will be distributed to the children.
Tax Implications of the QPRT

A. The objective of the QPRT is to reduce estate taxes by removing the property from the grantor’s estate. If the grantor’s death occurs after the QPRT has ended, the grantor’s taxable estate for federal estate tax purposes will include only the value of the children’s future interest in the residence when the trust was created, and all appreciation in value after the date of the gift will have been removed from the grantor’s estate.
B. On the down side, if the grantor has survived the QPRT term, the residence will not receive a “step up” in its income tax cost basis to estate tax value because the residence will not have been taxed in the grantor’s estate. For this reason, the QPRT is best suited for a home likely to stay in the family until the children’s deaths, when the residence will get the desired step-up in basis. However, even if the property is later sold by the children, the capital gains tax (at least under current tax law) will be far less than the inheritance tax that otherwise would have been due had the QPRT not been created.
C. During the QPRT term, the grantor will be treated for income tax purposes as if he or she were still the owner of the property; ie., the grantor can deduct real estate taxes, take advantage of tax elections on the sale of the property, etc. If the property is sold by the QPRT, a capital gains tax will be due in the same amount as if the grantor still owned the property. Additionally, the grantor must pay the capital gains tax out of his or her own funds, which often produces a good estate tax result because payment of the tax reduces the grantor’s taxable estate.
D. If the grantor dies before the completion of the term of years specified in the QPRT, the trust will end and the property will be distributed to the grantor’s estate and be disposed of by the grantor’s Will. The tax advantages will be lost, but there will be no tax detriments - taxes will be calculated as though the QPRT had never been created.

COMMONLY ASKED QUESTIONS

Q: How Long Should The QPRT Last?

A: Generally, the QPRT should be planned to last as long as possible so as to make the value of the taxable gift to the children as small as possible - but not so long that the grantor dies before the QPRT ends, which would lose the tax benefit because the property would be included in the grantor’s taxable estate.

Q: Can I Still Use My Residence After the QPRT Ends And The Children Become the Legal Owners?

A: That is entirely up to the family. If the property continues to be the grantor’s residence, presumable an agreeable rental arrangement will be worked out.

Q: Can I Use a Vacation Home Or Condominum For My QPRT?

A: Yes. A QPRT can hold either your primary residence or one other residence that you occupy.

Q: May I Use My Spouse’s Unified Credit (Lifetime Exemption Of $675,000 in 2000 and 2001) To Shelter My QPRT Gift If The Value Of My Gift Exceeds My Own $675,000 in 2000 and 2001?

A: Yes. However, it is risky (and probably unwise) to do so, because if you die before the QPRT ends, your spouse’s exemption will have been wasted. This unfavorable result can be avoided by giving your spouse a one-half interest in the residence first, and then creating two QPRTs, one for each of you.

Q: What Happens If I Wish To Stop Using The Property In The QPRT As A Personal Residence?

A: There are two choices. The trust agreement can provide that the trust will end and the property is to be given back to you. This may be unattractive, for if the cash proceeds are distributed to you, the tax shelter ends. Alternatively, the trust agreement can provide that the property is to be sold and either (a) a new residence purchased for you, or (b) the cash can be invested and you will receive a cash annuity - for example, if the net proceeds are $1,000,000, you might receive $100,000 per year until the termination of the trust. This will continue the tax shelter.

Q: What Are The Costs Of Managing a QPRT?

A: Little or none. If the grantor or a family member or friend is the sole trustee, which commonly is the case, there are no Trustee’s fees. Usually no court costs or court supervision is involved. If the grantor is also the Trustee, the trust does not file tax returns. There are costs involved in establishing the trust, however, such as attorneys’ fees for preparing the trust agreement and deeds of transfer and accountants’ fees for preparing the gift tax return.

Q: Can My (Wife) (Husband) Have The Right To Live In Our Home After My Term Expires?

A: Yes. Taxes are not affected.

This memorandum is intended to convey to you the principal considerations of qualified personal residence trusts as they apply to common situations. For that reason I have deliberately simplified the technical aspects of the tax law in the interest of clear communication. Under no circumstances should you rely on the contents of this Memorandum for technical advice nor should you reach any decisions with respect to qualified personal residence trusts without further discussion and consultation with your legal counsel and tax advisors.
Courtesy of: Steven W. Tarta, Attorney at Law. 45 N. Broad Street Ridgewood, NJ 07450 PHONE 201-444-8448 E-MAIL: TARTALAW@ATT.NET Fax 201-612-0827Please be sure to check out www.tartalaw.com for estate planning learning center information.

A charitable remainder trust (CRT) funded during the grantor’s lifetime can be a very effective financial planning took, providing the grantor valuable lifetime benefits.

Take the case of 72 year-old Phillip Philanthropist who has $1,000,000 of highly appreciated tech stock. Phillip has charitable inclinations, but is worried about the rising cost of health care. He feels he cannot afford to give away $1,000,000 during his lifetime as he may need to sell the stock in the future to meet nursing home expenses. However, Phillip plans to leave any stock remaining at his death to his favorite charities. While this plan is of enormous benefit to Phillip’s name charities, there is no financial benefit for Phillip during his lifetime.

Now take a look at what happens if Phillip gifts the stock to a CRT paying a 6 percent annuity payment each year. The immediate benefits to Phillip will be a substantial income tax deduction, increased income and diversification of risk with a deferral (or complete avoidance) of any capital gain tax.

The trustee will sell the low basis tech stock and build a diversified portfolio that can generate the necessary payout requirements while reducing the specific risk of having a largeconcentrated position in one stock. For the rest of Phillip’s life, the $1,000,000 of stock that previously paid no dividends will now provide an annual income of $60,000.00. As a further planning strategy, a portion of the distribution and the current income tax savings may be used to purchase life insurance to replace the gifted stock.

Phillip may structure his CRT as a charitable remainder annuity trust (CRAT) or a charitable remainder unitrust (CRUT). The difference is in the method of calculating the income.

The CRAT will pay a fixed amount each year which may be expressed either as a fixed dollar amount or a percentage of the value of the assets on the date the trust is funded. The CRAT will protect Phillip in down markets. In contrast, the payout from a CRUT is variable and is expressed as a percentage of the trust assets, redetermined annually. This will allow Phillip to “enjoy” the trust’s appreciation.

Funding a CRT during the grantor’s lifetime maximizes the benefits to the grantor. In addition to the financial benefits, there is the intangible benefit of rewarding the grantor’s altruism. Many charities are happy to immediately “recognize” the donors who have named the charity as the beneficiary of a CRT.

This article only touches on the basics of this sophisticated concept and is not intended to provide legal advice. It is imperative that you consult with an attorney specializing in advanced estate planning as well as a knowledgeable financial planner, insurance agent or certified public accountant.

An Overview

Dynasty Trusts are specialized irrevocable trusts designed to shelter assets from transfer taxes over multiple generations, while at the same time allowing your heirs to enjoy the fruits of those assets.

Typically, after estate taxes and other settlement costs are paid, most people leave the bulk of their estate outright to their children. The children then either consume or invest their inheritance over their lifetime.

Assuming they are financially successful and grow their estate to the point where it will be subject to estate taxes, the process is repeated generation after generation with estate taxes being paid each time wealth is transferred to the next generation.

The government likes it this way. They like to take their share each time wealth is passed from one generation to the next. If you try to skip a generation and give assets directly to your grandchildren or great-grandchildren, they have set a limit on how much you can give without incurring what is know as the generation-skipping transfer (GST) tax.

This tax is in addition to the regular estate tax is currently set at the highest marginal estate tax rate (55 percent).

For 2000, each of us has a $1,030,000 GST exemption that can be used during lifetime or at death. The key to the Dynasty Trust technique is to leverage the GST exemption by transferring assets to the trust during your life, and electing to have the transfer covered by your GST exemption.

The trust is set up for the benefit of your children and grandchildren and perhaps even your great-grandchildren.

You heirs can serve as trustees of the trust and can still have access to trust income during their life as well as limited access to principal.

If an independent trustee is used, even greater flexibility can be drafted into the trust language.

Another benefit of the Dynasty Trust is that the principal is protected from attachment by creditors of your heirs

- this can be particularly useful in the event of a lawsuit or a divorce. By combining the use of your applicable exclusion amount (which currently allows the lifetime transfer of $675,000 of assets into trust without incurring any gift tax) with the GST exemption, you can establish a Dynasty Trust without incurring any transfer taxes. A married couple can thereby transfer $1,350,000 into such a trust.

Ideally, this money should be invested in assets with long term growth potential since the growth of these assets will not be included in your estate or your heir’s estates for tax purposes.

This article only touches on the basics of this sophisticated concept;. To avoid costly mistakes, it is imperative that you consult with an attorney specializing in advanced estate planning as well as a knowledgeable financial planner or insurance agent or certified public accountant

REVOCABLE TRUST: An Overview

Why Should I consider a Revocable Living Trust as a planning tool?

A Revocable Living Trust is a legal document that allows you to make instructions about the management and control of your property while you are alive and the distribution of your estate after your death. This is the important benefit of a Living Trust over a Durable Power of Attorney which terminates at death. You will serve as the initial trustee; if you want, family members, friends, trusted advisors, banks or trust companies can also be named as trustees, either now or after you decide you do not want the job anymore or after your death or disability. You will be the primary beneficiary of the trust while living. Once your Revocable Living Trust is created, title to your assets should be transferred to it. You will transfer your bank accounts, certificates of deposit, real estate, investments, etc. into your Revocable Living Trust. When this process is complete, you, as an individual will no longer technically own the transferred property. Your Revocable Living Trust will be the legal owner, but you will retain complete control of your trust and the assets in it.

Can I change my Revocable Living Trust?

Your Revocable Living Trust can be modified whenever you wish; at any time (while you are alive and competent), you may alter, amend, or even revoke your Living Trust.

Why does a Revocable Living Trust avoid Death Probate while a will does not?

A will is a legal document which takes effect only upon your death. A will is designed for one purpose: to dispose of your assets upon your death. Probate and administration are the legal process of proving that your will is valid, paying your creditors, and transferring property to your heirs. A will must go through some type of probate proceeding even if the probate procedure is simplified because the estate is small.

A Revocable Living Trust allows you to “self-probate” your assets while you are alive and competent. The funding or retitling component of the Revocable Living Trust process allows you, as the trust maker, to transfer your assets into your Revocable Living Trust and consequently avoid the probate process.

What is “Death Probate”?

Death Probate is a legal proceeding ultimately controlled by the probate court. For the most part, Death Probate and the administration of an estate are comprised of six basic tasks:
1. Admitting the will to probate and determining its validity
2. Notifying the decedent’s heirs and beneficiaries
3. Inventorying and appraising the decedent’s assets
4. Paying creditors
5. Making sure any state inheritance tax has been paid
6. Distributing assets to the beneficiaries or heirs

The probate process often can be expensive and time-consuming. Studies indicate that the average cost of probate is anywhere between 3 and 10 percent of the value of the gross estate. The gross estate is the full appraised value of the estate without any reduction for debts and expenses. The average length of probate is between 1 and 2 years, although even the probate for a small, uncomplicated estate sometimes lasts several years. The probate process is also a matter of public record. Any person can access a decedent’s probate file and discover personal estate planning and financial information about the deceased person and his or her family. If you die owning assets in your own name, your will must be probated in order to convey legal title of your assets to beneficiaries named in your will. Consider your house: How are your heirs going to be able to do anything with the house? Your will must go through probate in order for the probate court to change the title on all your assets, including your house, into the names of your beneficiaries.

What types of property pass outside the probate process?

Examples include funds in 401(k) plans, individual retirement accounts, other types of pension plans, annuities, property held in joint tenancy, property held in certain trusts, and property held as tenants by the entirety.

Does a Revocable Living Trust avoid Federal Estate taxes?

Your Revocable Living Trust, if written correctly, will take maximum advantage of each person’s federal estate tax exemption. By structuring a Revocable Living Trust correctly, a married couple can pass up to a total of $1.350 million (in the calendar years 2000 and 2001) completely free of federal estate tax. A single person can pass $675,000 federal estate tax-free during this time period.

How Does a Revocable Trust Benefit My Estate Plan?

If you become disabled or are unable to manage your financial affairs, your Living Trust will eliminate the need for a court-appointed guardian to take control of your assets. Also, with a Living Trust your assets will go directly to your beneficiaries after your death. There will be no court interference. There will be a significant reduction in attorney’s fees and no court costs. In most situations, there will be no delay in distributing assets, and all your estate planning goals will be completely private.

A Living Trust creates no adverse lifetime income tax consequences. Because your Living Trust is revocable, the income generated by the assets in your trust is taxed to you as an individual and is reported on your personal income tax returns. This means that your personal income tax situation is exactly the same after the creation of your Living Trust as it was before. A Living Trust is difficult for disgruntled heirs to attack. A Living Trust is not part of the probate process and is also not governed by the complex rules surrounding a will, and this makes a Living Trust less prone to attack.

Can I sell assets owned by my Living Trust without complications?

You sell assets in the same way you currently do. You will, however, add the word trustee after your signature.

If I have stocks and bonds, how difficult is it to transfer these individual securities into my Revocable Living Trust?

The procedures for transferring your stocks and bonds into your Revocable Living Trust will vary for each security. There is a consistent system that you can use to facilitate all such transfers. Generally, when you have individual securities, you need to send the original certificates along with a letter of instruction to the transfer agent for that particular security or instruct your broker/account executive of your intentions to transfer the security to your Revocable Trust.

When transferring assets into my Revocable Living Trust, do you recommend that I change the ownership of my IRA to the name of my trust?

Qualified plans such as IRAs, 401(d)s, pensions, thrift plans, Keoghs, SEPs, and other plans where tax has been deferred should not have your Revocable Living Trust as owner. If you were to transfer the ownership of your IRA or other qualified plan into the name of your Living Trust, the transfer would be classified as a distribution and as such it would generate a taxable event in the year you made the transfer. You can change the primary beneficiary of the retirement plan to your spouse and make your secondary beneficiary your children.

Do I need a will if I have a Revocable Living Trust? For the most part, a Revocable Living Trust will enable your trustee to immediately direct assets to your beneficiaries upon your death. However, a Will must be prepared along with your Living Trust. The purpose of the Will is to allow your personal representative to “pour-over” to your Living Trust those assets which may not have been transferred to your trust during your lifetime.

This memorandum is intended to convey to you the principal consideration of a Revocable Trust as it applies to most estate planning. For that reason I have deliberately simplified technical aspects of the tax law in the interest of clear communication. Under no circumstances should you rely on the contents of this Memorandum for professional advice nor should you reach any decisions with respect to a Revocable Trust without further discussion and consultation with your legal counsel and tax advisors.

When considering whether there can be a repeal of the estate tax it is important to understand that politics, as well as economics, govern the system. The pure essence of this tax is to redistribute the wealth among the classes.

The IRS is able to obtain a much greater rate of return auditing estate tax returns than income tax returns. Ten to twenty trillion dollars is anticipated to be passed over the next several years to future generations.

The U.S. Treasury collected more than $23.5 billion in estate tax revenue in 1999. In the year 2000, the total is expected to exceed $26 billion.

However, last summer the press reported that Congress passed a massive tax reduction bill that included the future elimination of the estate and gift law on January 1, 2009. What was not reported is that the estate and gift tax law was returned to our present system on October 1, 2009. This repeal was only scheduled for nine months.Before a true change in the federal estate and gift tax law occurs it is important to understand the repercussions: Will the step up in basis be eliminated at death, which would cause greater tax revenue? As recently as June 10, 2000, it has been reported that the U.S. House of Representatives voted to repeal the estate tax. This proposed legislation is reported to face major hurdles in the U.S. Senate without bi-partisan cooperation and the likelihood of that cooperation between the democrats and the republicans diminishes each day as the presidential election draws nearer.

It is interesting to note that a new report discloses that when analyzing the value of an estate ranging from $650,000 to $5,000,000, the resulting estate taxation has statistically been 51.3% taxation of the estate. It is also interesting to note that the U.S. Treasury collected in excess of $20 billion in estate taxation.