Washington Times:  “The American bankruptcy system exists for the “honest but unfortunate” debtor, not for those who would use bankruptcy strategically to rewrite obligations just to get a better deal than they could outside bankruptcy. . . . The U.S. Court of Appeals for the 9th Circuit is primed to rule any day on one of the biggest potential loopholes – the ongoing Bleak House-style efforts of the late Anna Nicole Smith to obtain the fortune of deceased Texas oilman J. Howard Marshall.” See Law Professor Todd Zywicki's take on the Anna Nicole Smith appeal in his post today on The Volokh Conspiracy in which he says, “The op ed is based on my article with Marcus Cole on “Anna Nicole Smith Goes Shopping: The

New York Times:  “The estate tax isn’t dead.  It’s resting.  The tax has been eliminated for 2010, but the estates of people who die before the year is out may still not pass free and clear to their heirs.  The complexities of the tax system and the likely return of the estate tax next year — maybe even sooner — are creating confusion for accountants, lawyers and many families. . . . Odd as it may seem, tax specialists caution, the absence of an estate tax could result in greater liability on smaller fortunes than on bigger ones.”

Los Angeles Times:  “The McCourts, who own the Los Angeles Dodgers (so she says; he says he's the owner and she's not), jointly pocketed income totaling $108 million from 2004 through 2009, according to documents Jamie McCourt recently filed in the couple's divorce case in Los Angeles County Superior Court.  On that sum, they paid zero federal and state income tax.”

New York Times:  “TURNING down an inheritance may seem to be an alien concept. But with the estate tax in flux, this process, called disclaiming, can provide needed flexibility.  People who disclaim are generally treated as if they had died before the person from whom they are inheriting. The assets then go to the individual or trust next in line under the estate plan. Or, if the plan makes no such provision, assets are distributed according to state law.”

naplesnews.com:  “It is time again to face year-end chores, including gathering income tax information and estate and gift tax plans. In previous years, a good start would be to first review assets: what is owned, how much is it worth, how is it owned and who gets it when you die?  This year, the most important start is to review the actual wording of existing wills and trusts.   The federal estate tax expired at midnight Dec. 31, but is due to reappear next year with an exemption of one million dollars, not $3.5 million that has been current.”

The Sun:  “Making excuses to delay estate planning is easy. In fact, maybe you've already thought: ‘I'll worry about it when I'm older.”  Or “My estate is too small to be affected.'  Or even, ‘I don't know what I'm going to do with my assets yet.'  However, if you are unprepared when incapacity or death strikes, your family's financial future may not be protected.” Time and time again I see people procrastinate and avoid preparing for their own death or incapacity.  The most common reason is because people do not believe it will happen to them.  It happens to other people.  We all know that we will all die so why not take steps now to protect your family and loved ones from the mental

The Probate Lawyer Blog by Andrew Mayoras:  “Dennis Hopper was already fighting against advanced prostrate cancer.  Now the 73-year-old actor is turning up the heat in his battle against his wife, 41-year-old Victoria.   He filed for divorce in January, and according to published reports, the key factor is his will.  Victoria is a 25% beneficiary under Hopper's will. But, in the case of divorce, the couple's prenuptial agreement says that she gets nothing.”

Wall St. Journal:  “Congress shocked everyone by letting the estate tax lapse on Jan. 1.  Now, here is the real stunner: For many, the lapse actually will raise taxes.”

Outlook Money:  “t’s paramount that your wealth and assets reach your kids smoothly after you’re gone.  Here’s how to ensure it.”

Wall St. Journal:  “Seven months before Melvin Simon died, the ailing shopping-mall magnate altered his $1 billion will during a three-hour meeting in Asherwood, his palatial home near Indianapolis. A financial adviser had to hold and guide his hand as he signed the revised document, according to court filings.  Now that scene has become the center of a bitter estate struggle pitting Mr. Simon's second wife, Bren Simon, whose inheritance was greatly increased by the new will, against his children from his first marriage.” This reminds me of a case years ago involving a client of mine who was the sole heir of an Arizona woman who died.  She had a multi-million dollar estate that was left to a woman who was essentially a stranger. 

The Hill:  “Senate leaders are working on an estate tax deal to make it easier to move a bipartisan jobs bill.  The deal discussed by Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) involves moving an estate tax bill through the Senate that would prevent a huge hike in the tax from taking effect in 2011, staffers and lobbyists say.”

New York Times:  “FOR all of the on-screen drama that led ‘Crazy Heart; to three Academy Award nominations this week, an equally poignant tale is unfolding behind the scenes of the film in a battle over the estate of the songwriter Stephen Bruton, who co-produced the ‘Crazy Heart' soundtrack and tutored Jeff Bridges on guitar for his Oscar-nominated role as an aging country singer seeking love and redemption.   The estate battle involves Mr. Bruton’s wife of 13 years, Mary Keating Bruton, a photographer and former model, and T Bone Burnett, the award-winning music producer . . . . “

A video from The Heritage Foundation called “The Death Tax Burden on American Business.”  See also “Death Tax: Time to Kill It Forever.”  I benefit from the death tax because I am an estate planning attorney who charges $3,500 to prepare an estate plan with a trust that will maximize federal estate tax savings on the deaths of a husband and wife, but I favor repealing the death tax.  I think it is immoral to tax people all of their lives as they earn income and accumulate wealth and then tax the accumulated wealth a second time on death. Another Heritage Foundation video on the same topic. Heritage Foundation video number three on the death tax. Heritage Foundation video number four on the death tax.

Forbes:  “While the federal estate tax has temporarily lapsed for 2010, 19 states still take a bite out of their residents' estates.  Although Congress has let the federal estate tax lapse for 2010, your estate might still be subject to a state levy at your death. The feds are trying to work out a compromise to bring the federal tax back, maybe retroactively to Jan. 1, and with at least $3.5 million in wealth exempt per person. But some states tax far smaller estates and these laws aren't going away.  Currently, 19 states and the District of Columbia impose their own estate and/or inheritance taxes.”

Wall St. Journal:  “Mention ‘pets' and ‘estate planning' in the same sentence, and many people think of the late Leona Helmsley, the Manhattan hotelier and convicted tax cheat who left $12 million to Trouble, her Maltese pooch, and also specified that her trust of more than $5 billion be used to benefit dogs.  A judge later reduced Trouble’s personal bequest to $2 million, and the Helmsley estate decided to give only $1 million to dog causes. . . . But she cites four steps that any pet lover should take when planning an estate:”

Professor Paul L. Caron of the University of Cincinnati – College of Law has written a article entitled “Estate and Gift Tax Problems of Principals and Agents Under Durable Powers of Attorney.”  “The combination of advances in life expectancies and improvements in medical technologies has made it increasingly important to plan for a client's possible future incapacity. As a result, the use of durable powers of attorney has exploded in recent years. Indeed, estate planners now typically include such powers and living wills as components of a client's estate plan along with traditional wills and trusts. However, the use of durable powers of attorney can create serious estate and gift tax problems for both the principal and the agent.  This article discusses these tax problems

Wall St. Journal:  “HONG KONG—Police on Wednesday arrested Tony Chan, the feng-shui adviser who lost his claim on the multibillion-dollar estate of heiress Nina Wang, in relation to possible forgery.  Mr. Chan, a former lover of Ms. Wang, produced a will purporting to hand over her real-estate fortune to himself. A Hong Kong judge ruled Tuesday that the will was likely a forgery.  A spokeswoman for the Hong Kong police confirmed the arrest and said Mr. Chan hadn't been charged with any crimes.”

Indy Star:  “In filing, daughter asks that bank take control of billionaire's assets.  A Hamilton County judge has been asked to oust Bren Simon as sole trustee of her late husband's $1 billion-plus estate.  Deborah Simon filed the request Monday to put a bank in charge of overseeing the trust controlling Melvin Simon's massive holdings.  Deborah Simon's seven-page petition says keeping Bren Simon as trustee “would be detrimental to all beneficiaries” of the estate because of the ‘distrust and animosity' between them.”

Yuma Sun:  “What would you want to leave behind for your family?  If your choices were A) a contentious mess, or B) a well-coordinated estate plan, you would choose option B, right? All too many of us end up with option A.  In fact, a recent national survey discovered that only 44 percent of Americans have a simple will, much less a well-coordinated estate plan.  This is a story of four best friends from school: Charlie, Keith, Mike and Stu. Each of them lived very successful lives, but their deaths brought very different outcomes.”