Estate & Income Tax numbers for 2006

The IRS has determined the inflation adjusted numbers for 2006. The annual exclusion amount from the gift tax has been raised to $12,000. The other tax numbers from 2006 can be found by clicking here.

Income Tax Reform Panel suggestions

The Presidential Tax Reform Commission formed in January recently concluded their service with ideas on substantial changes to the federal tax code. These would lower all rates but severely limit the deductions and credits that are available to seek to simplify the process of tax preparation.

Specifically, the panel said the mortgage interest deduction should be replaced with a credit worth 15 percent of mortgage interest paid, to spread the benefit to more homeowners of modest incomes. The panel also recommended lowering the $1 million limit on mortgages eligible for the tax break to the average regional price of housing, ranging from $227,000 to $412,000.

Tax breaks for mortgages on second homes and home-equity loans would be eliminated.
In another major change, taxpayers could purchase health insurance using untaxed money up to about $5,000 for an individual and $11,500 for a family.


The article discussing the tax reform panels ideas is here.

Worlds first parital face transplant

The worlds first partial face transplant raises interesting issues related to estate planning as well as medical ethics. The article, pictures and a video concerning the procedure can be found by clicking the link above. The estate planning related issue is what powers and what specificity should be required for health care surrogates, personal representatives and powers of attorney for health care.

In the current situation the 38 year old divorced mother of two took sleeping pills to go to sleep after a reported family argument and was then seriously mauled by a dog who did significant damage to hear face making it hard for her to eat, talk and other issues. Doctors determined she had the capacity and the desire to proceed with the procedure although some had questions and the donor for the partial face transplant was from a braindead woman whose family consented. The case would have been governed by the law of France since it occured there but raises interesting issues regarding provisions in the will, living will and health care power of attorney.

Just as advanced directives such as living wills and health care surrogates (also known as powers of attorney for health care) were updated in response to the Health Insurance Portability Act new potential issues need to be considered as well to insure the individuals desires are carried out.

Assisted Living Facility costs up over 15% this year

A survey of assisted living facilities in the US has risen greater than 15% according to a Met Life Survey. Click the link to read the details of the assisted living facility survey.