Georgia Wills & Trusts: January 2004 Update
Legal Developments
Increased Federal Tax Exemptions (effective January 1, 2004)
Applicable Exclusion Amount: $1,500,000
GST Exemption Amount: $1,500,000
IRS Issues New Sample QPRT
In Rev. Proc. 2003-42 (May 9, 2003), the IRS issued a sample declaration of trust for a qualified personal residence trust (QPRT) with alternate provisions. A trust instrument that is substantially similar to this sample will be recognized as meeting all of the requirements of a QPRT under Section 2702(a)(3)(A) and Reg. Section 25.2702-5(c). The full text is provided in Resources. Question 3.
IRS Issues New Sample Charitable Remainder Trusts
On August 1, 2003, the IRS issued a series of new Revenue Procedures (Rev. Proc. 2003-53 through Rev. Proc. 2003- 60) which offer updates, annotations, and alternate samples for certain types of Charitable Remainder Trusts. The full text is provided in Resources.
Updated Product Features
New Ultra-simple Will
Most subscribers love our Simple Will because it is easy, yet thorough. Some, however, have clients for which an 8 page simple will is too overwhelming, and have asked for an even simpler version. We listened, and here it is - the Ultra-simple Will that weighs in at as little as 2 pages, increasing to 3 or 4 if you include a written list and standby trust. Question 2.
New Option to Limit GST Exempt Trust
As the GST Exemption amount increases between now and 2009, a formula gift may have the effect of pushing a larger portion of the estate into the GST Exempt Trust than the clients may have intended for the grandchildren, especially at the expense of the marital gift. Now you can limit the amount passing to the GST Exempt Trust either to a fixed amount or to a percentage of the adjusted gross estate. New Questions 303-306.
HIPAA Language added to Durable Power of Attorney for Health Care
The Durable Power of Attorney for Health Care now contains explicit reference to the Health Insurance Portability and Accountability Act of 1996, as amended ("HIPAA") to assure the attorney-in-fact’s access to medical records.
New Option to Declare Living Will Effective in Durable Power of Attorney for Health Care
A provision may now be added to the Durable Power of Attorney for Health Care declaring a living will to be effective notwithstanding O.C.G.A. Section 31-32-11. New Question 1009.
New Option to Refer to Client as Widow or Widower
Some widows and widowers object to being identified as simply “unmarried” in formal documents. They are now given the option of being referred to as the widow or widower of their deceased spouse. Question 19, new Questions 21 and 22.
New Option to Include Explanation of Valuation Choices in Draft Document
Where either a “date of distribution” or “fairly representative” valuation formula must be chosen you now have the additional option of including an explanation of both in the draft document itself to facilitate discussion with your client. Questions 407 and 878.
Expanded Payment of Death Benefits Availability
A provision may now be included, even when no Marital and Family Trusts exist, to the effect that any life insurance proceeds are to be held in a trust outside of probate, and are not to be used to pay claims against the estate (sometimes referred to as a “testamentary life insurance trust”). This provision assures that life insurance proceeds are administered under the terms of the document, but are not subject to a decedent's creditors (as they would be if paid to the estate). Question 857.
Question Numbers Now Displayed in Navigator
Question numbers are now displayed when you rest your cursor on any question in the Navigator.
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