Senator Reid Signals Election Results Mean Lower Taxes

Posted on November 16, 2010 by Roger Billings

It comes as no surprise that the Republican gains on November 2 have created pressure for lower taxes.  Surviving Senate Majority Leader Harry Reid is already waiving a white flag.  Having previously spoken out strongly in favor of increasing taxes, especially for the wealthy, he was quoted today as saying that he “will take a look at” extending the Bush-era tax cuts that were embodied in the 2001 tax relief act known as EGTRRA.  Additional analysis of Senator Reid’s statement is available in this Reuters report. 

The gradual reduction of the Federal Estate Tax was also part of EGTRRA, culminating in a one year elimination of the tax in this year of 2010.  Logic suggests that Congress will have no choice but to revisit the Federal Estate Tax before the end of the year.  Otherwise, the exemption amount will drop from unlimited to $1 million, drastically increasing the number of taxable estates.  But no one ever said that logic governs politics in Washington, and the pressure to deal with the income tax could overshadow the need to address the estate tax.  We’ll keep on eye on this.

The U.S. Capitol
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Investing in Real Estate in Other States Magnifies the Need for a Living Trust

Posted on November 13, 2010 by Roger Billings

Shopping for real estate bargains?  Considering investing in real property located across state lines?  Already own homes in more than one state?  I hope you have a living trust, and that each parcel is in the trust.  If you want your heirs to avoid multiple probates, that is.

A primary function of probate courts is to transfer assets from decedents to heirs.  A living trust, also known as a revocable trust, can enable the heirs to avoid probate.  More about that here.  But even if probate is required, because for example there was no trust, the probate court in the state where decedent lived and owned a home does not have jurisdiction over real estate located in another state.  A separate probate court proceeding will have to be commenced and concluded in each separate state where property is owned.  The solution to this multi-state nightmare is to put all of the real estate into a living trust.  If done properly, each parcel can be managed and transferred by the designated successor trustee, and, if there are no disputes, without any court involvement.

House for sale in Rocky Ripple
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Seminar Announcement

Posted on November 11, 2010 by Roger Billings

Introducing my new blog.  I hope you like it.

I wanted to spread the word that I will be on the faculty of a seminar entitled “Estate Administration Procedures: Why Each Step is Important”, hosted by NBI on December 14, 2010 at the Sheraton Grand Hotel in Sacramento.  The seminar is designed as an overview of the California Probate process, for attorneys, paralegals and other professionals desiring a better understanding of the world of probate.  Online registration and more information about the seminar, other faculty members and the cost are available here.classroom
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