The House of Representatives voted to extend the estate tax, which was set to expire in 2010 as part of the Bush-era tax cuts. The Senate still has to approve an extension, an unlikely event before December 31, given that the Senate is pre-occupied with the health care reform issue. A likely alternative is that the Senate votes to temporarily extend the estate tax until it can take up debate on a permanent extension.
As presently written, the estate tax would have expired in 2010, only to be revived in 2011 at a higher rate, 55% instead of the current 45%. The House extension maintains the maximum rate at 45% and applies only to estates over $3.5 million.
Republicans are unanimous in their support of repealing the estate tax, which, they say, hurts small businesses such as farmers and car dealerships that have substantial assets that bump the value above the exemption limit. Maintaining the estate tax burdens the transer and, therefore, the viability, of family owned businesses from one generation to the next.
Friday, December 4, 2009
Tuesday, December 1, 2009
Which Bankruptcy Lawyer?
Bankruptcy is one area of the law that is booming right now. If you're thinking of filing, you have dozens, if not hundreds, of options when it comes to choosing a bankruptcy attorney. Any lawyer licensed to practice law and admitted to practice before the local federal court can file a bankruptcy for you. The question is, should she?
Congress, in its infinite wisdom, requires attorneys to tell their prospective bankruptcy clients that the client doesn't need an attorney to file bankruptcy. And the bankruptcy courts have done a good job of making the forms you need available online. But that's where the government's help ends. It's up to you to figure out how to fill out a form. Is that debt secured or unsecured? Does it go on Schedule D or Schedule F? What's an executory contract or lease? Should I mark the box "reaffirm," "surrender," or "redeem"? And did you know there is a fourth option that isn't on the form?
When choosing a bankruptcy attorney, as in most things, you get what you pay for. Someone's fees might be low because he just switched from doing divorces to bankruptcies last week. Don't automatically choose the attorney with the lowest rates or the biggest Yellow Pages ad.
Congress, in its infinite wisdom, requires attorneys to tell their prospective bankruptcy clients that the client doesn't need an attorney to file bankruptcy. And the bankruptcy courts have done a good job of making the forms you need available online. But that's where the government's help ends. It's up to you to figure out how to fill out a form. Is that debt secured or unsecured? Does it go on Schedule D or Schedule F? What's an executory contract or lease? Should I mark the box "reaffirm," "surrender," or "redeem"? And did you know there is a fourth option that isn't on the form?
When choosing a bankruptcy attorney, as in most things, you get what you pay for. Someone's fees might be low because he just switched from doing divorces to bankruptcies last week. Don't automatically choose the attorney with the lowest rates or the biggest Yellow Pages ad.
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