Winter 2009

We hope this newsletter finds you well. We are writing to you this month because, although the economic downturn can seem daunting, opportunities exist at this moment that, when properly implemented, allow individuals and families to permanently protect their estate from the federal estate tax. The combination of several factors make this a perfect time to implement an estate planning strategy that takes advantage of current circumstances.

The worst of times can sometimes bring the best opportunities.
    Rhonda

The "Perfect Storm" Planning Opportunity

• Reduced Values of Assets. The value of stocks and bonds, closely held businesses and real estate are significantly less (35%-45% on average) measured from their previous highs 12-18 months ago. Most believe these values will rebound in subsequent years;
• No Estate Tax Repeal. The estate tax, which was slated to be repealed in 2010, is now virtually certain to be legislatively extended this year for clients with an individual net worth of $3.5 million or more;
• Historically Low Interest Rates. Interest rates, and specifically the "Applicable Federal Rate" or (AFR) which is the IRS approved rate utilized in certain advanced estate planning strategies, are at historic lows and will likely only remain at these unprecedented low levels for a few more months. For example, for the month of January 2009, the interest rates utilized in these types of estate planning transactions are as follows:
  
  - Short Term AFR .81%
  - Mid-Term AFR 2.06%
  - Long Term AFR 3.57%

These three factors combine in a way that allows our firm to create a permanent estate tax freeze solution for clients having a net worth of $3.5 million or more (or who are likely to have a net worth of that amount on the date of their death). It is now possible, using a variety of strategies, to freeze most clients' estates so that as the value of their assets recover and grow, the increase in value will never be subject to estate taxation.

If you are interested in learning more about these planning opportunities, please give us a call and schedule an appointment to discuss it further.

Don't Forget to Earn Your Brownie Points!

We appreciate the trust you place in us by referring your family and friends. To show our appreciation beyond just saying "Thank You" we have started our "Brownie Points" program. We have teamed up with a professional baker whose products include one-of-a-kind brownies, breakfast breads and muffins. Once you refer a friend or family member to our firm, you will receive a post card asking which item you prefer and what date and time you would like to accept delivery.

We are truly grateful for all of your referrals and encourage you to earn your "Brownie Points" today by continuing to send your family and friends to our firm. You may contact us in Virginia at 571-522-6393 and California at 714-527-7147.

"Your life and your business are unique. Your legal services should be too!"

CONTACT US TODAY!

This newsletter is intended to be a guide about legal issues and it is not intended to be legal advice, legal representation, or advice that can be relied on to avoid any penalties that the Internal Revenue Service may assert because of a successful challenge to any position taken on a tax return. Due to the rapidly changing nature of the law, I make no warranties or guarantees of the accuracy or reliability of the information contained herein.

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