Planning Potpourri

■ Roth Conversions: If you converted your IRA to a Roth, call
your CPA and re-evaluate. Some folks converted to get the income tax out of their
estate and to thereby reduce their estates for estate tax purposes. This may no
longer be relevant in light of the $5M exemption. If this was your motivator,
consider recharacterizing back to a regular IRS and saving the tax.  Some planned on paying income tax immediately
on conversion because of the anticipated increase in income tax rates over the
next two years. That never happened so review the ability to defer tax over 2
years with your CPA.

■ 2010 Gift Tax Returns: These will have more traps than the Augusta
National so proceed with caution. The end of 2010 had some funky generation
skipping transfer tax planning opportunities that may require special
treatment. The deadlines are also rather confusing in that it appears that
gifts must be reported on time but the GST consequences of those same gifts
might be reported at a later date. Transfers to certain trusts in 2010 may not
require an allocation of GST exemption (but some will!) so evaluate each and
determine if an affirmative election out of the GST automatic allocation rules
is required.  Given the uncertainty of
what 2013 might bring, and a possible lapse in the GST automatic allocation
rules (your CPA will translate this!) you might want to affirmatively elect to
allocate GST exemption on all gift tax returns to gifts that should be covered,
regardless of what is presently required. 2010 gift tax returns are not for the
faint of heart to prepare.

■ Court Proceedings for 2010
Decedents: Even if
your have a veritable Cleaver family and everyone gets along a court proceeding
may be required to interpret what a will for a 2010 decedent means. How should
a formula clause be interpreted? What impact does the retroactive estate tax
have? What about a state law passed to deal with the uncertainty of 2010? Will
a disclaimer be effective? Time may really be of the essence in these
proceedings.

■ Special Grandchildren Trusts: Funky trusts set up in 2010 to take advantage
of the unique GST planning opportunities may have to be invested differently
then other similar trusts, distributions may differ from what would otherwise
be anticipated, and no further gifts should be made to certain of those trusts.
So identify these trusts and be sure all your advisers understand their special
status.