WPC nHp5P\v5Pzqp PSD]\ dx% $K{m#ˊc8"bNL ur'2|\Ԝ}kYAZaa"(6+֬_ y`'8F,eiR=}%E\Cn< b%vmP#ꈻ:!;7;M.J[5aJT*Wl91c%8QBOQAKZb gg*}9|^~m`I1cTNB! >e`HŸd|YnhV1f岳ߋMzճC'? .+0HpG͓`1mQDt17܈&μ"uSHahbl;{b?E(5Rðfq>K/WKL3|9Uwω_d1 Ke)#>UON %M 0:S 0 0{ 0f 0N 03 0 0 0 0 0 0[ 04 0  0 0 0z 0D 0  0 0 0 0W 0) 0 0 0 0SU3*UA>@^ ~w4 mHP LaserJet 2100,,,,,,,,0(9 Z6Times New Roman RegularX($USUS.,2G+J 0_level1  X /%4 4 <DL/23  ..  2( 4 <DL2  2D+J 0_level2   ," <DL,23  ..  2( 4 <DL2  2A+J 0_level3   ) <DL)23  ..  2( 4 <DL2  2>+J 0_level4  ` &<<DL&23  ..  2( 4 <DL2  2;+J 0_level5   #DL#23  ..  2( 4 <DL2  28+J 0_level6    DL 23  ..  2( 4 <DL2  25+J 0_level7  h DDL23  ..  2( 4 <DL2  22+J 0_level8   L23  ..  2( 4 <DL2  2/+J 0_level9    L23  ..  2( 4 <DL2  2GJ 0_levsl1  X /%4 4 <DL/23  Ԁ  2( 4 <DL2  2DJ 0_levsl2   ," <DL,23  Ԁ  2( 4 <DL2  2AJ 0_levsl3   ) <DL)23  Ԁ  2( 4 <DL2  2>J 0_levsl4  ` &<<DL&23  Ԁ  2( 4 <DL2  2;J 0_levsl5   #DL#23  Ԁ  2( 4 <DL2  28J 0_levsl6    DL 23  Ԁ  2( 4 <DL2  25J 0_levsl7  h DDL23  Ԁ  2( 4 <DL2  22J 0_levsl8   L23  Ԁ  2( 4 <DL2  2/J 0_levsl9    L23  Ԁ  2( 4 <DL2  2GJ 0_levnl1  X /%4 4 <DL/23   2( 4 <DL2  2DJ 0_levnl2   ," <DL,23   2( 4 <DL2  2AJ 0_levnl3   ) <DL)23   2( 4 <DL2  2>J 0_levnl4  ` &<<DL&23   2( 4 <DL2  2;J 0_levnl5   #DL#23   2( 4 <DL2  28J 0_levnl6    DL 23   2( 4 <DL2  25J 0_levnl7  h DDL23   2( 4 <DL2  22J 0_levnl8   L23   2( 4 <DL2  2/J 0_levnl9    L23   2( 4 <DL2  %2A`Arial\  `&Times New RomanD}, Y,:i+003|xU  !USUS.,  _   TheEconomicGrowthandTaxReliefReconciliationActof2001!XXXX!&%X!X   TheEconomicGrowthandTaxReliefReconciliationActof2001wassignedintolawbyPresidentBush t onJuly19,2001.Itmakesnumerouschangestothelawsgoverningthetaxationofgiftsandestates.Some L changestakeeffectimmediatelyandotherchangeswillphaseoverintime.#!XX%!&##XXX!X# XuSXXX $t #XXX XuSj#&%XX!&%%&TheSunsetProvision#!XX%!&##XXX!X# XuSXXX  2  &LR%X XuS#&%% &LR`#!&%%&TheActcontainsa"sunset"provision.Underthesunsetprovision,allofthechangesmadebytheActwill   ceasetoapplyafterDecember31,2010.Thereafter,absentadditionalactionbyCongress,thelaws x   governingthetaxationofincome,gifts,estatesandgenerationskippingtransferswillapplyasiftheActhad P   neverbeenenacted.#!XX%!&##XXX!X#&%XX!&%%&Inessence,wewillrevertbacktocurrentlaw(includingthescheduledphaseinofthe (x  unifiedcreditthrough2006asfurtherdescribed)#!XX%!&##XXX!X# XuSXXX P       &LR%X XuS#&%% &LR#!&%%&Gift,EstateandGenerationSkippingTransferTaxes#!XX%!&>##XXX!X# XuSXXX        &LR%X XuS#&%% &LR#!&%%&EffectiveJanuary1,2002,theActincreasestheamountwhichmaybeshelteredfromgiftorestatetaxby |  theunifiedcreditto$1,000,000.Thereafter,theamountwhichmaybeshelteredfromestatetaxisscheduled T toincreasegraduallyfrom$1,000,000to$3,500,000betweennowand2009.#!XX%!&h##XXX!X#&%XX!&%%&Theamountwhichmaybe ,| shelteredfromgifttaxwillbefrozenat$1,000,000.#!XX%!&Z ##XXX!Xy #&%XX!&%%&Thereisnochangeinthelawgoverningthe$10,000 T annualexclusion,whichiskeyedtoinflation.#!XX%!&A ##XXX!X` # XuSXXX ,     #XXX XuS; #&%XX!&%%&Section6166  #!XX%!& ##XXX!X #=dXX %c =d# XuSX  %cW ##XXX XuSv #&%XX!&%%&Closelyheldbusinesscouldapplytoextendthetimetopayestatetaxattributabletothatinterestforupto J 14years. "r #!XX%!& ##XXX!X# XuSXXX  #XXX XuS # XuSXXX  #XXX XuSX#&%XX!&%%&QualifiedFamilyOwnedBusinessInterests " #!XX%!&##XXX!X# XuSXXX#XXX XuSi#&%XX!&%%&ThisActrepealstheQualifiedFamilyOwnedBusinessInterests(QFOBI)deductionforestatesofdecedents  dyingafterDecember31,2003. Z #!XX%!&##XXX!X# XuSXXX  #XXX XuS# XuSXXX  #XXX XuS5#&%XX!&%%&PracticalConsiderations  Z  #!XX%!&##XXX!X# XuSXXX  #XXX XuS5#!XXXX#XXX!X#&%XX!&%%&EstatePlanningstrategiescanonlybedevelopedafterconsidering"TheBigPicture"(ageandhealthissues, ! " estateplanningobjectivesandfamilyneeds,sizeandcompositionofestate,etc.)#!XX%!&##XXX!X# XuSXXX "#   #XXX XuS#&%XX!&%%&Nontaxestateplanningobjectivesfrequentlyoutweightaxplanninggoals P$% #!XX%!&##XXX!X# XuSXXX  #XXX XuSf# XuSXXX  #XXX XuS#&%XX!&%%&Taxandnontaxliquidityneedsshouldalwaysbeadequatelycovered &P!' #!XX%!&##XXX!X!# XuSXXX  #XXX XuS# XuSXXX  #XXX XuS0#&%XX!&%%&LiquidityNeeds#!XX%!&~#!xvX!X#xvv!x# xvvx '#)   # XuSXv x##XXX XuS0# XuSXXX   &LR%X XuS#&%% &LR#!&%%&Estatesettlementcosts#!XX%!&##XXX!X'# XuSXXX n)$+  &LR%X XuS#&%% &LR#!&%%&Estate/Incometaxissues#!XX%!&##XXX!X# XuSXXX F*%,  &LR%X XuS#&%% &LR#!&%%&Incomeneedsoffamily#!XX%!&##XXX!X # XuSXXX +n&-  &LR%X XuS#&%% &LR#!&%%&Businessownersuccessionissues#!XX%!&##XXX!X# XuSXXX +F'.  &LR%X XuS#&%% &LR#!&%%&Estateequalization#!XX%!&##XXX!X# XuSXXX ,(/    -(0    &LR%X XuS#&%% &LRq#!&%%&PracticalConsiderations#!XX%!&##XXX!X# XuSXXX       &LR%X XuS#&%% &LR#!&%%&Westilldon'tknowwhenwewilldie#!XX%!&##XXX!X& # XuSXXX n  &LR%X XuS#&%% &LR #!&%%&GifttaxesandCarryoverBasisapplyfor2010#!XX%!& ##XXX!X%!# XuSXXX F  &LR%X XuS#&%% &LR!#!&%%&Currenttaxprovisionsreturnafter2010#!XX%!&!##XXX!X-"# XuSXXX n  &LR%X XuS#&%% &LR"#!&%%&ThefutureofEstateTaxRepeal/Reformlegislationisdifficulttopredict#!XX%!&"##XXX!X0## XuSXXX F      &LR%X XuS#&%% &LR##!&%%&Conclusions/ActionPlan#!XX%!&/$##XXX!Xq$# XuSXXX        &LR%X XuS#&%% &LR$#!&%%&Theonetimeincreaseinthegifttaxexemptionshouldprompteachindividualtoconsidermaximizingthe r   assetswhichcanbetransferredtochildrenand/orgrandchildrenfreefrompaymentoftransfertax.#!XX%!&=%##XXX!X%# XuSXXX J        &LR%X XuS#&%% &LR&#!&%%&Theimpactonthetypicaltwotrustestateplanshouldbereviewed.#!XX%!&'##XXX!XS'# XuSXXX X       &LR%X XuS#&%% &LR'#!&%%&Inmanyestates,theestatetaxexemptionamountisdirectedtothefamily(orunifiedcredit)trustinwhich   thesurvivingspousemayormaynothaveaninterest.Asthisexemptionamountincreasesandthetaxis   ultimatelyrepealed,thisplanmayresultinthebulk(orall)ofanestatepassingintothefamilytrust,over v  whichthespousehaslittleornocontrol.#!XX%!&H(##XXX!X(#