Gift tax $5,000,000 exemption may be expiring

As of today, you can give up to $5,000,000 free of estate or gift taxes to your children or grandchildren, pursuant to the new estate planning rules signed into law by President Obama in December 2010. However, Congress is currently considering reducing that amount significantly, and shortening the time frame by which gifts can be made. Since we don't know what will happen to the estate tax rules after 2012 (whether they will keep the $3.5 million tax exemption, or lower it), if you're in a position to do so, now is the time to take advantage of the $5 million exemption. This may be gone by the end of 2011, or even sooner.

IRS revokes tax-exempt status of hundreds of thousands of non-profits

The IRS has started publishing a list of organizations that have had their federal tax-exempt status automatically revoked for failing to file an annual information return or notice with the IRS for three consecutive years.

Here's a link to the IRS list for California: http://www.irs.gov/pub/irs-tege/ca.pdf. If you regularly give money to a charitable organization, be sure and verify they aren't on this list. If their tax exempt status has been revoked, your donation will not be tax deductible.

BioLargo signs Central deal

One of my clients, BioLargo, Inc., just signed a deal with Central Garden & Pet Company, details here: http://biolargo.blogspot.com/2011/03/central-garden-and-pet-signs-exclusive.html

Should I incorporate in Delaware???

If you're doing business in California, you are subject to the laws of the state -- thus, forming a corporate entity out of state, such as Nevada or Delaware, does not change the requirement that you register your corporation in California, and pay California's annual Franchise tax of $800.


You really need to consult with a business attorney to determine if you even "need" to incorporate. Many clients that think they should, shouldn't, and others that don't think they should incorporate, should do so. There are many factors to consider, and cost, including California $800 annual minimum franchise tax, is one of them

Paying Zero Estate Taxes -- 2011 and beyond

Most of us are aware than the "zero" estate tax ends on December 31, 2010, and in 2011 and beyond the estate tax, whether it be 35% under proposed legislation extending the Bush tax cuts, or 55%, will be in full force.

So, how can you avoid paying estate tax in the future??

I've used a couple of creative solutions that that serve these objectives:

• ensure continued access to your money until your death
• transfer specific amounts to your children
• die with a zero balance, and owe zero estate tax

One creative solution involves giving to charity -- purchase life insurance, in an irrevocable trust, with a death benefit at an amount you wish to leave to your children, and then, upon your death, give your assets to charity. 

Another creative solution involves planned giving over a period of time, using a family limited partnership -- if done right, you can gift your assets to your children, retaining lifetime income, and avoiding the estate tax, and whatever the rate, entirely. This will also serve to protect your assets from creditors during your lifetime.

Finally, don't forget to check out my new website for more information - www.CaliforniaLegalSolutions.com

Contact me via email (john@browning-law.com) or phone (949 244-5053 with any questions.

John R. Browning, Esq.

Court fees going up in California

As part of the Budget Act of 2010, certain filing fees will increase. Each county will begin collection of the new fees at different times based on when they can update their systems. The fees that will increase are outlined below:

1. First appearance in an unlimited action by plaintiff(s) and each defendant will increase to $395. This fee increase applies to all types of filings in which the previous fee was $355 (civil, probate, family, etc.)
2. First appearance in a limited action ($10,000 up to $25,000) by plaintiff(s) and each defendant will increase to $370.
3. First appearance in a limited action (under $10,000) by plaintiff(s) and each defendant will increase to $220.

Note: the above fees do not include the additional fees required for Unlawful Detainer filings (additional $15) or the surcharges imposed in Riverside County, San Bernardino County or the City and County of San Francisco.

4. Motion for Summary Judgment/Adjudication will increase to $500.
5. Application by counsel to appear Pro Hac Vice will increase to $500.
6. Additional $3 penalty to every parking violation.
7. Additional increases in various criminal penalties and traffic fines.

Additionally, the Judicial Council is required to establish a fee for telephonic appearances on or before July 1, 2011 (separate from any fees paid to "Court Call" or other vendors).

These new fees will go into effect immediately upon the Governor's signature on SB857, which is expected to be next week.

(Thanks to OneLegal for providing this information)

Click here to check out my new website, www.CaliforniaLegalSolutions.com 

New civil liability for furnishing alcohol to minors

A new California law makes adults legally responsible for damages caused by a minor to whom they provide alcohol. Thus, if your child's friend drinks at your house, and you know it, and the friend drives off and gets into an accident, you will be sued and held liable for the damages. Time to make sure your home owners insurance and umbrella policy are in full force.

Click here to check out my new website, www.CaliforniaLegalSolutions.com