SUDOKU
Protect Your Wealth From the Whims of Politics
With a Spousal Lifetime Access Trust
Russian Tea Cakes
As we write this, the presidential election results remain uncertain, and control of the U.S. Senate hinges on two Georgia run-off elections. There is a famous legal clause used in contracts known
as “time is of the essence,” which means that certain actions required by the contract must be completed by mandatory deadlines. Right now, time is of the essence for you to use your “Excess Exemption Amount” by Dec. 31, 2020. If you are married and your estate (including the death benefit of your life insurance policies) is greater than $10 million or projected to grow to that amount, consider creating a Spousal Lifetime Access Trust (“SLAT”) and making a one-time gift using your “excess” gift and estate tax exemption by that deadline. The current gift and estate tax exemption (2020) is $11.58 million (the “Exemption Amount”) and will be reduced to approximately $6.5 million on Jan. 1, 2026 (the “Sunset Provision”). The Democratic Party platform calls for reducing the Exemption Amount to $5 million or even $1 million. Depending on events, the Excess Exemption Amount may range from $5.08 million to $10.58 million (the “Excess Exemption”). If Democrats control the federal government in 2021, they may act to eliminate the Excess Exemption amount. If they decide to make the change in the law retroactive to Jan. 1, 2021, any planning done after Dec. 31, 2020, will not be beneficial. If Republicans hold on to the Senate, the change in the Excess Exemption will not occur in 2021 but will almost certainly change in 2026. If you do not use the Excess Exemption Amount prior to a change in the law, then you lose it. This may increase the estate tax costs of transferring your client’s wealth to your children by more than $2 million based on a 40% estate tax rate. You will also miss out on additional estate tax savings related to future appreciation on assets transferred from your taxable estate. We recommend an immediate analysis to determine if a SLAT is appropriate for your clients. If you schedule a Zoom meeting with us, we can review your wealth report, customize the template SLAT diagram for your estate plan, and develop a timeline to implement the strategy prior to Dec. 31, 2020. To schedule a Zoom meeting for your clients, please call 317-726- 1714 and ask for our office coordinator, Gabrielle Cobb. We look forward to seeing you and your clients soon.
Make your tea time extra special with these tasty cakes that are easy to make.
INGREDIENTS
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1 cup butter, at room temperature 2 tsp vanilla extract 1 cup powdered sugar, sifted (plus extra for rolling cookies)
• • •
2 cups flour 1/4 tsp salt
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1 cup pecans or walnuts, finely chopped
DIRECTIONS
1. Preheat oven to 325 F. 2. Using a mixer, cream butter in a large mixing bowl. 3. Add the vanilla, then gradually add sugar, beating until light and fluffy. 4. Sift flower, measure, then sift again with the salt. Add gradually to the butter mixture, then add nuts and mix well. 5. Shape dough into 1-inch balls. On an ungreased baking sheet, place tea cakes 2 inches apart. 6. Bake for 20 minutes or until edges are lightly browned. 7. Let cool slightly, then remove cakes from the baking sheet and roll in powdered sugar. Place on a cooling rack to cool completely. 8. Before serving, roll cookies in powdered sugar again.
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