Text Box: Winter, 2002 Text Box: 412-433-9996 mhagan@haganlaw.net

Estate Planning Update      

Text Box: IMPORTANT ESTATE AND GIFT TAX CHANGES FOR 2002 Text Box: My practice continues to grow through referrals from my clients. I thank you. Text Box: In this regard, your powers of attorney, trusts, and perhaps other documents should be reviewed to see if they specify $10,000 as the limit on the right to make annual gifts. In such event, the document should be updated if permitted to refer more generally to the “annual exclusion amount applicable from time to time under the Internal Revenue Code,” since additional inflation-based increases are likely to occur. INCREASE IN THE GENERATION-SKIPPING TRANSFER (GST) TAX The Generation- Skipping Transfer tax exemption for gifts to grandchildren and younger generations was also indexed for inflation. For 2002, it has been in- creased from $1,060,000 to $1,110,000.

DISCLAIMER

Martin J. Hagan is licensed to practice law in the Commonwealth of Pennsylvania. This website is intended solely for informational use and is not intended to solicit clients. Likewise, any information contained in or obtained from this web site is for informational purposes only and is not intended to be used as legal advice.

IRS CIRCULAR 230 DISCLAIMER:   Pursuant to Treasury guidelines, any tax advice contained in this website (or any link from it) does not constitute a formal opinion. Accordingly, any tax advice contained in this website (or any link from it) is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be asserted by the Internal Revenue Service. You should seek advice based on your particular circumstances from an independent tax advisor.

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Last Updated: 06/29/07