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IMPORTANT - Estate Tax Changes in 2010
What everyone in the estate planning legal community thought would never happen has happened. Congress did not enact legislation prior to December 31, 2009 to avoid the complicated one-year repeal of the federal estate tax and avoid the return to a carry-over basis regime for individuals dying in 2010. The current law will reinstate the estate tax on January 1, 2011 and will drastically reduce the estate tax exemption from $3.5 million (as it was in 2009) to $1 million for all individuals dying after January 1, 2011.
The one year return to carry-over basis requires beneficiaries of individuals dying in 2010 to inherit the same cost basis as the deceased individual had in his/her assets instead of receiving a fully stepped-up basis to the date of death value of such assets. This change could result in significant income taxes to beneficiaries when the assets are sold.
There are some exceptions to the carry-over basis rule. Estates may be able to increase the basis in certain assets by up to $1.3 million and up to another $3 million for qualified assets that pass to a spouse or certain trusts established solely for the benefit of a spouse. To avoid the unnecessary exposure to additional income taxes and take advantage of these basis adjustment rates, proper planning and drafting of documents is required.
The one-year repeal of the estate tax may also have an unexpected and adverse impact on Wills and trusts drafted with commonly used formula provisions, resulting in distributions contrary to those intended.
While the concept of no estate tax sounds like a good thing, the current law is fraught with pitfalls, but also presents potential planning opportunities. Please keep in mind that Congress could pass a new law in 2010, and attempt to make it retroactive to the first of this year. We encourage you to review your existing documents with us to see what, if any, changes might be required in light of the current status of the law.
Louis Winner heads Seiller Waterman's family law section. With a practice which stretches across Kentucky and a national presences, Mr. Winner was recognized in 2006 by the judges in Jefferson County as one of the rising stars in the family law field. His recent article, Facebook meets Family Law, appeared in the Louisville Bar Briefs. Mr. Winner is licensed in Kentucky, New York and Texas. For more information on Mr. Winner, visit louisvillefamilylaw.com
Kyle Citrynell, who leads our Intellectual Property and Information Technology Law Group, will be lecturing at the University of Kentucky on October 30, 2009 and at the Louisville Visual Art Association on November 8, 2009. Opportunities for Arts Professionals in Challenging Times will address changes in the arts industries landscape in the wake of the economic downturn and the evolving law of "techno-tainment," She will be speaking at the University of Kentucky to its Arts Department students and faculty as a guest lecturer to the 200-student Arts Professions class. Her lecture at the Louisville Visual Art Association is part of the Artists Marketing Project (AMP) program.
Seiller Waterman LLC is proud to be supporting the work of the Louisville Visual Art Association, Louisville's oldest arts organization now celebrating its 100th year, by offering scholarships to new members who attend the AMP program on November 8. For more information about the AMP scholarships and the Louisville Visual Art Association, please visit http://www.louisvillevisualart.org/ .
Seiller Waterman LLC, led by the firm's senior real estate member, Joseph H. Cohen, has been selected to provide legal services for the upcoming Airport's Residential Sound Insulation Program. The Federal Aviation Administration (FAA) has determined that certain homes around the Airport are eligible for sound insulation improvements to minimize aircraft noise inside the home. The Louisville Regional Airport Authority (LRAA) is working with the FAA and C & S Engineers (which created the QuieterHome® Program) to administer these improvements. For additional information, please click the link below.
Seiller Waterman recently gave their support to the Kentucky Bar Association "Rule of Law" Symposium on the Kentucky State University campus. Our support proved essential in making this historic event a success.
Kyle Citrynell and Brian Pollock co-authored the 6th Circuit Review Editor for the Defense Research Institute Commercial Litigation publication, The Business Suit, 2009.
Pam Greenwell was recently elected to the Board of Directors of the Louisville Forum.
A Seiller Waterman Litigation Team, Bill V. Seiller, Chris Bates, and Kyle Citrynell, finished a two week trial in U.S. District Court, Eastern District of Kentucky. The jury returned a three million dollar verdict on behalf of Seiller Waterman's corporate client against two former officers and directors for breach of fiduciary duty. The jury also returned a verdict against an incorporated Foundation for aiding and abetting the officers/directors in their breach.
Attorneys are 2009 Kentucky Super Lawyers:
- David M. Cantor, Bankruptcy & Creditors/Debtor Rights
- Glenn A. Cohen, General Litigation
- Carl D. Frederick, Personal Injury Plaintiff
- Alan N. Linker, Business/Corporate
Seiller Waterman Attorneys are TOP Lawyers
Louisville Magazine's 2009 "TOP Lawyers as Picked by Their Peers" includes 9 of Seiller Waterman's attorneys. Included are:
Neil C. Bordy
- Bankruptcy Law
- Commercial Law
- Litigation
David M. Cantor
- Bankruptcy Law
- Commercial Law
Glenn A. Cohen
- Banking Law
- Commercial Law
- Labor & Employment
Joe H. Cohen
- Business Law
- Construction Law
- Real Estate Law
Carl D. Frederick
- Insurance
- Personal Injury
- Professional Liability
Alan N. Linker
- Business Law
- Business Litigation
Bill V. Seiller
- Litigation
- Zoning, Planning and Land Use
Irwin G. Waterman
- Business Litigation
- Corporate Law
- Taxation
Robert V. Waterman
- Commercial Law
- Corporate Law
- Health Care
Carl D. Frederick has been inducted as a Fellow of Litigation Counsel of America, Trial Lawyer Honorary Society, also known as LCA. The Litigation Counsel of America is a trial lawyer honorary society composed of less than one-half of one percent of American lawyers. Fellowship in the LCA is highly selective and by invitation only. Fellows are selected based upon effectiveness and accomplishment in litigation, both at the trial and appellate levels, and superior ethical reputation. The LCA is aggressively diverse in its composition. Established as a trial and appellate lawyer honorary society. reflecting the American bar in the twenty-first century, the LCA represents the best in law among its membership.
Pamela M. Greenwell was elected to the Louisville Forum, February 2009.
Anuj G. Rastogi was elected as President of the Louisville Estate Planning Council May 2008 - May 2009.
Pamela M. Greenwell was elected to the Board of Directors of the Louisville Free Public Library Foundation May 2008.
Seiller Waterman Attorneys are 2008 Kentucky Super Lawyers:
- David M. Cantor, Bankruptcy & Creditors/Debtor Rights
- Carl D. Frederick, Personal Injury Plaintiff
- Alan N. Linker, Business/Corporate
Bill V. Seiller Co-Presented Medicaid and Elder Law: Representing Clients in a New Legal Landscape seminar February 2008.
Seiller Waterman Attorneys are TOP Lawyers
Louisville Magazine's 2008 "TOP Lawyers as Picked by Their Peers" includes 9 of Seiller Waterman's attorneys. Included are:
Neil C. Bordy
- Bankruptcy Law
- Commercial Law
- Litigation
- Trusts & Estates
David M. Cantor
- Bankruptcy Law
- Commercial Law
Glenn A. Cohen
- Banking Law
- Commercial Law
- Labor & Employment
- Litigation
- Securities
Joe H. Cohen
- Banking Law
- Commercial Real Estate
- Corporate Law
- Energy
Carl D. Frederick
- Banking Law
- Insurance
- Litigation
- Personal Injury
- Products Liability
Alan N. Linker
- Business Law
- Trusts & Estates
Bill V. Seiller
- Family Law
- Litigation
- Zoning, Planning and Land Law
Irwin G. Waterman
- Business Law
- Corporate Law
- Taxation
- Trusts & Estates
Robert V. Waterman
- Commercial Law
- Commercial Real Estate
- Corporate Law
- Health Care
Seiller Waterman Attorneys are 2007 Kentucky Super Lawyers:
- David M. Cantor, Bankruptcy & Creditors/Debtor Rights
- Kyle Anne Citrynell, Intellectual Property
- Carl D. Frederick, Personal Injury Plaintiff
- Alan N. Linker, Business/Corporate
Sean E. Mumaw was published in Louisville Bar Briefs article titled "The Supreme Court and the IRS Tackle the Deductibility of Investment Related Advisory Fees."
Pamela M. Greenwell, a volunteer working with the Bantu people and their immigration into Louisville, mentioned in Wall Street Journal article "Bourbon, Baseball Bats and now the Bantu."
Louis P. Winner recently graduated from the Louisville Leadership Academy, and was elected as Vice-Chair of the Family Law Section of the Louisville Bar Association.
BULLITT COUNTY JURY AWARDS SEILLER WATERMAN CLIENT $1.1 MILLION AGAINST McDONALD'S CORPORATION
After a month long trial, a Bullitt County, Kentucky jury awarded Donna Summers $1.1 million against McDonald's Corporation. Ms. Summers, represented by Glenn Cohen and Cindy Effinger, sued McDonald's Corporation for its intentional failure to train and warn her about a bizarre hoax caller who had plagued the fast food industry, including McDonald's, for more than ten years. As a result of her unwitting participation in the hoax call, Ms. Summers was charged with a crime, and ultimately entered an Alford Plea on that crime. Ms. Summers proved at trial that McDonald's knew its managers would be subject to criminal charges for their participation in the hoax call because several of its managers in the past were also charged with crimes. However, McDonald's did nothing to inform or warn its managers of the danger this hoax caller posed to its managers and employees. In fact, Ms. Summers proved at trial that McDonald's did not inform high level executives, including those responsible for the safety and security of its employees and customers, about this hoax caller. Ms. Summers proved that McDonald's knew she would fall victim to this caller and did nothing to warn her about it.
The jury awarded Ms. Summers $100,000 on her claim of intentional infliction of emotional distress against McDonald's, and placed equal fault on McDonald's and the hoax caller. The jury also awarded Ms. Summers $1 million in punitive damages against McDonald's for its reckless disregard of Ms. Summers' life and safety.
