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KJT LEGAL CORNER – January 2010
Happy 2010 to all the members of The K.J.T. and their families and I hope the new year has been all that you hoped it would be. I look forward to the upcoming year, The K.J.T. State Convention, and your continued interest in and questions for this legal column.
Question: I understand that the estate tax on estates in 2010 is zero. Is that true?
Yes, the estate tax and the generation-skipping transfer tax (which applies to assets given to grandchildren by a decedent) were repealed at the end of 2009, and therefore, at least in 2010 and under the current legislation, there is no tax on estates of any size.
Beginning in 2011, the estate tax returns on estates over $1 million at a rate of 55 percent. However, it is possible that Congress could enact different legislation before 2011, so stay tuned.
Question: I have a son who is married and has two young children. My son and daughter-in-law have very few assets and mostly debt. Do they need a will since they don’t really have an estate?
Yes. You have described the financial situation of most young couples. Regardless of the value of one’s “anticipated estate,” persons with minor children should include provisions in their wills that set out preferences as to the appropriate guardian(s) for the testator’s minor children. In addition, the testator may and should list any persons that should not serve as guardians for the minor.
Philip J. Hundl is State Attorney for the K.J.T. and a shareholder in the law firm of Wadler, Perches, Hundl & Kerlick in Wharton, Texas. State Attorney’s note: The information in this column is not intended as legal advice but to provide a general understanding of the law. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
Submit your questions for this column via email to phundl@wphk-law.com or via U.S. Mail to Wadler, Perches, Hundl & Kerlick, Philip J. Hundl, KJT State Attorney c/o KJT Legal Column, 101 W. Burleson Street, Wharton, Texas 77488.
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