For fans of the Netflix series Tiger King: Murder, Mayhem and Madness, a power of attorney has become a central piece of conspiratorial evidence. So, what exactly is a power of attorney? Powers of attorney come in several different forms, including:

1. General Power of Attorney: Grants an individual, the agent, broad powers to manage financial or other matters as specified in the document on behalf of another individual, the principal. Upon the principal’s incapacity or death, the agent’s powers become invalid.

2. Durable Power of Attorney: Grants an agent broad authority to manage the principal’s financial or personal affairs as outlined in the document. This document typically goes into effect immediately upon signing, and survives incapacity, meaning the agent retains stipulated powers even after the principal becomes incapacitated. These powers only become invalid upon revocation or the death of the principal.

3. Limited Power of Attorney: Grants an agent the power to act on behalf of the principal only for a specific purpose or transaction, for instance cashing checks or making medical decisions for the principal’s child for a limited period of time.

4. Springing Power of Attorney: Grants an agent the power to manage financial or other matters listed in the document on behalf of the principal, but such powers only go into effect (“spring” into action) upon the principal’s incapacity.

5. Health Care Power of Attorney: Grants an agent the power to make medical decisions on behalf of the principal in the event the principal is incapacitated or cannot communicate his or her wishes.

The power of attorney in question in the Tiger King series appears to be a durable power of attorney. The power of attorney curiously states that the agent retains her authority to act on behalf of the principal (in this case, the agent’s missing husband) even after the “incapacity or disappearance” of the principal. Viewers suspect nefarious meddling by the agent in the principal’s legal affairs, as the potential disappearance of the principal is not often specifically addressed in powers of attorney. Conspiracy theories abound, and whether she did or she didn’t, many Americans are thankful for this unbelievably outrageous distraction.

You have surely heard about the new tax legislation signed into law by President Trump at the end of 2017, but what does it mean for your estate plan?  Below are a few key changes to the tax law that can impact estate planning:

• The annual federal gift tax exemption increases to $15,000 this year, to be adjusted for inflation each year thereafter.  This means that each individual can give up to $15,000 in gifts to as many individuals as they would like in 2018 without touching their lifetime exclusion amount.
• The lifetime gift and estate tax exclusion amount increases to $11,200,000 for each individual as of January 1, 2018, and will increase with inflation each year through 2025.  This means that each individual can pass assets worth up to $11,200,000 during life and/or at death without incurring federal gift or estate taxes.
• The lifetime exclusion amount is still portable, meaning a deceased individual's unused portion can be utilized by a spouse.  As such, the exclusion amount for a married couple for 2018 is effectively $22,400,000.
• On January 1, 2026, the lifetime exclusion amount will drop back to the 2017 level ($5,490,000 adjusted for inflation) per individual.
• The federal estate tax rate remains 40% for those who exceed the lifetime exclusion amount.

Wishing you all the best for a happy and healthy 2018!

After this month's election of Donald Trump as the next President of the United States, many Americans anticipate changes to the tax code.  On the campaign trail, President-elect Donald Trump vowed to eliminate the estate or "death" tax.  So, what does this mean for you?

For 2016, the unified credit (sometimes referred to as the estate and gift tax exemption) is $5.45 million per person, or $10.9 million for a married couple (this will increase to $5.49 million per person, or $10.98 million for a married couple in 2017).  This means that only assets held at the time of death above this threshold are subject to estate taxes as the law currently stands.

If enacted by Congress, Donald Trump's proposal would eliminate the current estate tax, but would impose a capital gains tax on assets valued at over $10 million at the time of death.  A recent article in Forbes provides a synopsis of Donald Trump's proposal.  What will actually happen remains to be seen, as an overhaul to the entire tax code requiring compromises will likely be necessary before any changes will be made by Congress.