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Estate Planning & Trusts - Old News

• Kelly Teaches "Beyond Estate Planning" this Fall

• Cost of Living Increases for Estate and Gift Tax

• SSA Announces Emergency Procedures

• Assistance for Part B Medicare Enrollment

• Pennsylvania has Reduced the Inheritance Tax

topBack to School!

Kelly is teaching another class this semester. The class is titled Beyond Estate Planning (course number MM01) and meets Tuesday nights at Grace Epiphany Church, October 1 and 8 beginning at 7:00pm to 9:30pm. This class is designed for seniors and their family members and will address such issues, as Social Security benefits and Medicare–Parts A and B. We’ll examine special tax exemptions and deductions for seniors, as well as Medicaid, including how you qualify for benefits, how you can best protect your assets and what the Estate Recovery Act in PA means to you. We’ll consider ethical issues such as medical and/or financial Powers of Attorney and the advantages of having a Living Will.

For details and registration information, check out the Mount Airy Learning Tree web site or call their office at 215-843-6333 for a catalog.

topCost of Living Increases for Estate and Gift Tax

The IRS increased the gift tax annual exclusion from $10,000 (where it has been since 1982) to $11,000 and increased the GST exemption from $1,060,000 to $1,100,000.

The IRS also increased the gift tax annual exclusion for gifts to a noncitizen spouse from $100,000 to $110,000, increased the aggregate amount that special use valuation of qualified real property can reduce a decedent's estate from $800,000 to $820,000, and increased the portion of an estate eligible for the 2% interest rate on estate taxes deferred under Code Sec. 6166 from $1,000,000 to $1,100,000.

topSSA Announces Emergency Procedures

The Social Security Administration has activated special emergency handling procedures for survivors claims resulting from the terrorist plane crashes at the World Trade Center, the Pentagon, and in Pennsylvania on September 11, 2001. The agency's disaster/emergency procedures allow for alternative proofs of death in such claims, since in some cases it will take months to receive a death certificate. In that event, the proofs of death that Social Security will accept include airplane manifests, lists of employees furnished by employers, and other statements placing a worker at the scene of the tragedy.

topAssistance for Part B Medicare Enrollment

It’s open enrollment until March 31 for Medicare Medical Insurance (Part B). If you have trouble paying your Part B Medicare Medical Insurance monthly premium of $50, or if you never signed up for Part B because you couldn't afford it, here's some good news. If you have Medicare and limited income and assets, your state may help you pay your Part B premium and other medical expenses. Contact your state or local Medicaid, social services, or welfare office for more information, or call 1-800-MEDICARE (1-800-633-4227). If you are deaf or hard of hearing, you can use the Medicare TTY number, 1-877-486-2048. When you call, ask about savings for Medicare beneficiaries. And, of course, Medicare information is available at www.medicare.gov on the Internet.

topPennsylvania has Reduced the Inheritance Tax

The 2000/2001 budget for Pennsylvania has reduced inheritance taxes. The lineal tax (for transfers from parent to child, grandchild, etc.) and tax on living trust transfers have been cut to 4.5% from 6%. A separate class has also been established for transfers between siblings, with a taxable rate of 12%, as compared to the normal rate of 15%. All changes are effective for decedents dying after June 30, 2000.