Update on Estate Taxes

On December 17, 2010, President Obama signed “The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act which significantly altered the rules concerning federal estate taxes, gift taxes and generation-skipping transfer taxes for the 2010 through 2012 tax years.  Once again the polarized Congress was incapable of reaching a bipartisan long term solution and instead bartered a short term “fix” that will expire at the end of 2012 unless Congress acts again to extend or further alter the current law.  In on other words the exemption amount, which has been generously increased to $5 million for the years 2011 and 2012 will revert back to $1 million as of January 1, 2013 unless Congress acts!  Obviously the intent is to leave this political “hot potato” on the table so that both sides can use it to their political advantage.  You can expect the Republicans to continue to argue for a total repeal of “the Death Tax” and the Democrats countering with keeping the tax as a means of making the very rich “pay their fair share”.

The bottom line is that if you happen to die in 2011 or 2012, you can leave up to $5 Million to your beneficiary without having to pay any federal estate tax.  And if you happen to be married, you can effectively transfer $10 Million to your beneficiaries, ($5 Million each) without the federal government taking a bite.  Note that the exemption amount does include gifts made during the grantor’s lifetime.  So, for the next two years almost everyone I know can breathe easy, but since there will have to be changes in the future, STAY TUNED!

Happy Holidays!

As we reflect upon this holiday season, we are proud to be The Anthem Law Firm. We’ve grown not only as a firm, expanding from a solo practice to a full-service law firm with five attorneys and two law clerks, but also as a member of this community.
This year our attorneys have participated in many of the Anthem community events, such as Anthem Days and Autumnfest. We have also helped with some pro-bono charity work for churches and schools in Anthem.

Despite our growth this season, we’ve learned to live within our means as a firm. We have worked hard to keep our overhead low so that we can offer low rates while providing great value of our quality services to our clients. The economic climate may still be grim, as evidenced by the number of bankruptcies filed this year, but we work hard to help our clients to the best of our ability. In light of our economy, we are also working hard to focus on what is important this holiday season: our family, friends, and those less fortunate. One of our attorneys, Kristin Wurr, left this year to pursue an executive position at a charity she holds close to hear heart, Hope 4 Kids, International. While we were sad to see Kristin go, she continues to work with us in an of-counsel capacity, and we are happy to announce that we are donating 10% of the proceeds from our wills, living wills, and powers of attorney to support the charity this holiday season.

To our friends and families, we’d like to extend a holiday thank you for patience and understanding during the times when it was necessary to work nights and/or weekends.
To our business colleagues, we appreciate the referrals you have sent to our firm as well as the services you have provided for us throughout the year.

And, most importantly, to our clients: Thank you for the trust that you have invested in The Carroll Law Firm to protect your rights and guide you through difficult legal matters. We are always humbled when we meet new clients who have been referred by former clients, as it is a sign that a former client was happy with our services and trusts us to help their friend or family member. We hope to continue to provide quality services for all of your legal needs in the New Year!

The Lights of Anthem

The Holiday Season is usually associated as being a time of peace, love, and goodwill. Unfortunately for too many people, the holidays can instead be a time of stress, too much commotion, loneliness, and financial instability. This may be especially true today with a poor economy resulting in the loss of jobs, foreclosures, and even bankruptcy for many. Perhaps instead, it is a good time to re-evaluate how we can better use our resources this holiday season.

Albert Schweitzer said, “Sometimes our light goes out but is blown into flame by another human being. Each of us owes deepest thanks to those who have rekindled this light.” If you look around the community of Anthem, you will see many lights shining. The summer of 2010 found 12 women joining with Habitat for Humanity to begin framing a new home, and the project is now nearing completion. Girl Scout Troop 242 sponsored the Holiday Extravaganza with Santa and Mrs. Claus which was free to families when they donated food items to the local food bank. Water 4 Kids International Baseball Classic is getting ready to sponsor their 2^nd Anthem baseball tournament with proceeds going to Uganda, Africa, to build a well for the local villagers. Also local volunteers prepared 150 sack lunches, 150 toiletry bags, and provided and delivered 200 blankets for the homeless in downtown Phoenix. These are just a few examples of the incredible projects going on in our very own community!!

When our lives are not exactly as we had planned them to be, maybe the best thing that we can do for ourselves is to look around and see how we can become the light for someone else. We do not have to spend money we don’t have, but we all have been given various talents and time. That may be the best gift we can give. This holiday season find a worthy cause and become involved. For a town the size of Anthem’s, there is definitely something for everyone. We are so fortunate to live in a community whose light shines for all to see.

Staying Safe During the Holidays

Do you have any idea what the number 10,839 represents? It is the number of people killed by an impaired driver in the United States last year.  In Arizona (AZ) alone, there were over 14,000 arrests made in 2009 for those driving while under-the-influence; and 4,500 of these came between Thanksgiving and New Year’s Day.  Unfortunately, the holiday season is notorious for examples of people having one more drink at the office party, or enjoying an extra cocktail with a friend while remembering old times, or maybe just making a poor decision because of reduced judgment.

The Drunk Driving Fines and Penalties in Arizona range from the 1^st offense having a base fee of $250 with a number of additional charges possible, to jail time with a minimum of 24 hours up to 10 days, or license suspension from 90 to 360 days.  The court may also order the installation of an Ignition Interlock Device. Obviously, if it is the 2^nd or 3^rd conviction, the penalties drastically increase.  The measurement of 0.08 percent Blood Alcohol Concentration is the standard measurement used to determine if a driver is “impaired.” There is not an exact answer if you are wondering how many drinks would result in this measurement of 0.08.  Each individual has different characteristics that result in a different amount of alcohol needed to reach that measurement.  It really takes very little alcohol to make a person legally drunk, and so it is best not to drink before driving.

This holiday make good choices for yourself, your family, and for others.  Taking that extra drink begins with a choice and can end with a tragedy that could have been prevented.  Remember that the Arizona DUI Task Force, which began 20 years ago when two officers were killed by a drunk driver, is increasing their number of officers and setting up routine checkpoints to help make this a safer holiday season for all. Drive Safely!

When “I Do” Becomes “I Don’t”

I don’t think anyone who says “I do” plans on later saying “I don’t.” But here you are, and there are a lot of things to think about. What assets and debts have you and your spouse accumulated during your marriage, and how will they be divided? If you have children together, what parenting time schedule do you envision? How much child support will you owe or be owed? What about spousal maintenance (alimony)? The list goes on.

We at the Carroll Law Firm PLC can help you answer these questions and more. We can serve as mediators if you and your spouse want to try and agree to the terms of your divorce with minimal court involvement. We can represent you in an uncontested or a contested divorce action. We can help you with a legal separation. No matter what route the end of your marriage takes, we will protect your interests and help you navigate through this difficult time.

If you and your spouse have children, your divorce decree will end your marriage, but it will not end your relationship with each other. As I recently heard a judge say, “A divorce ends a marriage; it does not end a family.” For that reason, you may want to think not only about the concrete terms of your divorce, but what your relationship with your spouse will look like in the future. Think about birthday parties, school events, soccer games. . . . What if your spouse wants a few extra days of parenting time because his or her relatives are in town? What if you need your spouse to pick the kids up at school on “your” day because you have a late meeting at work? How flexible are you willing to be, knowing that you may need to ask for some flexibility sometimes, too?

If you are facing the end of your marriage, please know that we are here to discuss your options with you. Please call us at (623) 551-9366 if you would like to schedule a free thirty-minute consultation. Now and always, we wish you the best.