I had the privilege of attending the Carter Center’s Winter this weekend in San Diego.

Carter Center’s Winter Weekend

The Weekend was an opportunity for the many supporters of the Carter Center to gather in a relaxed atmosphere and learn more about the Carter Center and its many philanthropic activities, including: waging peace (through election monitoring and programs to advance civil rights), fighting disease (such as the near-elimination of “river blindness”), and countless other programs. Part of the Weekend consisted of an auction of various donated items and Presidential memorabilia. The auction raised $1.6 million in furtherance of the Carter Center’s activities.

While attending the Weekend, I had the pleasure of attending a replaying of the interview which President Carter gave to Piers Morgan last week on CNN. What was interesting was that President Carter himself was there to narrate the interview and answer questions from the audience. He has incredible energy and drive, especially for someone who, at eighty-eight, could simply choose to coast.

I have the great pleasure of serving the Carter Center as a member of its national Planned Giving Advisory Council. Just as the Carter Center serves the world, the Council serves philanthropic organizations and the estate planning community in general. The Council’s purpose is not just to further the Carter Center and its laudable projects, but the cause of philanthropy and estate planning itself.

The great work of the Carter Center reminds me how important it is to raise the topic of charitable giving during the initial consultation. The estate planning process is foreign to most clients. Even the savviest client may not know that there are options for charitable giving that can reduce the net cost. For example, a charitable remainder trust can provide a tax benefit for the client while benefitting the charity. Raising the issue does the client a service, as well as helping the broader community.

Stephen C. Hartnett, J.D., LL.M.
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com

As of this blog posting, there are 12 days left before the clock strikes midnight on December 31^st and the law changes.

It’s just like watching the ball drop in New York’s Times Square:

10…9…8…7…6…5…4…3…2…1…

As of this writing, the law to which it will change will be the pre-EGTRRA/TRA law. In other words, we will have a $1 million applicable exclusion per person. Gone will be the days of the $5.12 million exclusion. Also, portability will be history. For many people, the New Year will not be very happy because of the tax changes it might bring.

It remains to be seen if Congress and President Obama can come to an early resolution on the issue before the expiration of the “Bush Tax Cuts” on January 1, 2013. It’s unclear whether the estate tax is even part of the negotiation on the “fiscal cliff.” Both sides have been very quiet in this regard.

If we go back to the old law, many things will change. Estate taxes will, once again, become more relevant to many people. However, there is one thing which I hope will not change. Clients and practitioners have refocused in the last few years, in ways I think are for the better. For the most part, their top priority has not been the tax issues. Their top priorities have been the legacy which the clients wish to leave, as well as asset protection, divorce protection, and Medicaid concerns.

I cannot help but think of the ending of the Great Gatsby: “So we beat on, boats against the current, borne back ceaselessly into the past.”

I hope that if we are borne back to prior law, clients and estate planning attorneys alike can retain the focus which they have learned. Taxes may become a more important part of the conversation after January 1^st. However, I hope that we will make resolutions to remember the other priorities upon which we have come to focus in the last few years.

Stephen C. Hartnett, J.D., LL.M.
Associate Director of Education
American Academy of Estate Planning Attorneys, Inc.
9444 Balboa Avenue, Suite 300
San Diego, California 92123
Phone: (858) 453-2128
www.aaepa.com