Wow, Thanks Grandma! Should You Make Big Gifts to Your Grandchildren in 2010?   Written By: Attorney Tammy A. Weber   It’s been a year of discussion and speculation regarding the lack of federal estate tax.  What we haven’t heard much about is generation-skipping tax or GST – also repealed for 2010.  This is a way for wealthy older people to pass some of their holdings to their grandchildren. While GST can be rather complicated, it’s purpose is to prohibit people from transferring property for too many generations without paying tax.  It is separate from income, estate and gift taxes.  The GST is imposed if the transfer does not result in gift or estate tax.   If transfers are made to grandchildren this year, there is no GST.  Gift tax still applies at a maximum rate of 35%, the lowest percentage since 1934.  This year the lifetime exemption on gift tax is $1 million.  If there is no action by Congress, gift tax will rise to 55% in 2011 and a donor will not owe GST on the first $1.06 million, but will owe gift tax and the GST on any amount over the $1.06 million.  According to a recent article, J.P. Morgan recently analyzed the numbers and found that the benefit of a $1 million gift made in 2010 is $305,565 more than the same gift in 2011. A J.P. Morgan adviser “said that while there is a lot of interest in making gifts to grandchildren this year, many people are waiting until closer to the end of the year to make sure Congress doesn't enact a retroactive estate and generation-skipping tax at the last minute. The chance of this grows slimmer each day. Nonetheless, some people are loathe to write a big gift tax check tax until they are more certain” Tax Break Promotes Big Gifts to Grandchildren, Private Wealth, Sept. 23, 2010. http://www.fa-mag.com/pw-mag/pw-news/6085-tax-break-promotes-big-gifts-to-grandchildren.html   If you are thinking about making transfers this year, it is always advisable to check with your estate planning attorney and financial advisor. Your decision can have an incredible impact not only on your estate planning goals, but also on your grandchildren.   Gas Law Lingo Defined & Explained: What Does it Mean to Deduct Post-Production Costs from Royalties? Written By: Attorney Dale A. Tice This is the fifth installment in a series written by Marshall, Parker lawyer Dale A. Tice.  Dale is a nationally recognized expert on planning for landowners in the Marcellus Shale regions of Pennsylvania.  He has been quoted in the New York Times and Investor’s Business Daily. In issues of this newsletter, Dale is defining a common term used in the Marcellus shale industry and then explaining why it’s important to you as a landowner, professional or consumer living in our region.  If you would like regularly updated information about gas developments in the Marcellus shale, you can also follow Dale Tice on Twitter at http://twitter.com/PAGasLawGuy The primary financial incentive for landowners to sign an oil and gas lease is the royalty payment.  While some of the cash-bonus payments that landowners have received seem large, the potential royalties far exceed even the most substantial signing bonus.  The leases offered very early in the gas leasing boom often paid the state minimum 1/8 (12.5%) royalty.  However, leases in 2010 more commonly include royalties in the range from 15% to 20%, or even higher. Many gas leases provide that the landowner’s royalty accrues “at the wellhead.”  This language is generally interpreted to mean that the gas company pays all of the costs incurred to drill the well and move the gas from the target formation to the surface.  After the gas reaches the top of the wellhead and the landowner’s royalty attaches, the gas company and the landowner then share in all of the costs necessary to render the gas into a marketable product and to transport the gas to the point of sale.  These costs are often referred to as “post-production costs.” While there are many variations in the verbiage, the bottom line is that the large majority of the leases used by the operators in the Marcellus Shale allow the gas company to deduct post –production costs from the landowner’s royalties.  Like all lease provisions, however, this is a negotiable point. If the subject property is located in an area of interest to the gas companies, it may be possible to request an addendum to the lease specifically providing that the landowner’s royalty is paid without deductions to treat and transport the gas. It is difficult to generalize regarding the impact of deductions for post-production costs on landowner royalties.  Nevertheless, it is always to the landowner’s benefit to restrict the gas company’s right to deduct such costs from the royalty share.  There is even concern that the deductions may provide an opportunity for a company to deliberately underpay the landowner royalty.  In fact, a lawsuit that recently settled for millions of dollars alleged that two energy companies deliberately underpaid royalties to the federal government.  http://tinyurl.com/34jey53. As always, it is recommended that landowners who are considering signing a gas lease consult with an experienced oil and gas attorney to ensure that the lease clearly and unambiguously states that royalties are paid without deductions for post-production costs.  In addition, it is beneficial for the landowner to retain the right to audit the books of the gas company in order to verify that the royalties are calculated fairly and properly.  Join Attorney Tice for a Free Workshop on Gas Royalty Planning Issues on Saturday, November 13, 2010 at 10:00 AM at Yesterday’s in Renovo. He will discuss how to limit taxes, family partnerships & LLCs and how you can preserve your mineral rights for future generations. For more information or to register, visit www.pagaslaw.net   To view our past installments of “Gas Law Lingo: Defined & Explained” visit our articles page at http://www.pagaslaw.net/Articles.html    PA Fair Care Offers Health Insurance to People with Pre-Existing Conditions:   Written By: Attorney Jeffrey A. Marshall, CELA*   In the past, many Americans have been unable to obtain private health coverage at any price because of a pre-existing health condition. Now, as a result of the new health reform law, individual states or the federal government have begun offering coverage to these previously uninsurable individuals. These Pre-Existing Condition Insurance Plans are transitional program until 2014, when insurers will be banned from discriminating against adults with pre-existing conditions, and individuals and small businesses will have access to more affordable private insurance choices through new competitive insurance exchanges. (In 2014, Members of Congress will also be required to purchase their insurance through these exchanges.)   Since July, eligible residents of Pennsylvania have been able to apply for coverage through the state’s Pre-Existing Condition Insurance Plan which is being run by the Pennsylvania Insurance Department TO QUALIFY FOR COVERAGE: - You must be a citizen or national of the United States or lawfully present in the United States.     - You must have been uninsured for at least the last six months before you apply.     - You must have had a problem getting insurance due to a pre-existing condition.   The PA Pre-Existing Condition Insurance Plan is called PA Fair Care.  It covers a broad range of health benefits, including primary and specialty care, hospital care, and prescription drugs.  All covered benefits are available for you, even if it’s to treat a pre-existing condition. Premium $283.20 per month     Deductible $1,000 in-network $10,000 out-of-network     Out-of-Pocket Limit $5,000 in-network $20,000 out-of-network     To access the online application, you may click this link, or you may copy and paste this link into your web browser: https://www.humanservices.state.pa.us/Compass.web/MenuItems/FCSystemCompatibility.aspx Topics: Eligibility and Availability Benefits Cost How to Apply Additional Questions Other helpful information: Fact Sheet on PA Fair Care Link to news release announcing approved proposal Link to the final proposal Link to news release announcing proposal submission Link to Health Care Reform & You page News Release - Pennsylvania to Begin Offering Health Plan for People with Pre-Existing Medical Conditions In addition, a toll-free number, 1-888-767-7015 (TTY 1-888-767-7018), is available to help you. This call center is open Monday thru Friday, 8:30 a.m. to 4:30 p.m. Pennsylvania is one of 29 states and the District of Columbia which have chosen to run their own programs. 21 states have elected to have the federal government (HHS) administer the plans. If you are not a Pennsylvania resident you can get more details, including a list of states in each category by clicking here. For information on how to apply for coverage, click here.   Governor Issues Executive Order Intended to Improve Home Healthcare Services in Pennsylvania   Written by: Attorney Jeffrey A. Marshall, CELA*   Governor Edward G. Rendell has signed an executive order to enhance home healthcare services for seniors and people with disabilities. Currently, Pennsylvania faces an acute shortage of direct caregivers, a shortage estimated at about 10,000 workers. As a result, consumers who directly hire their own caregivers are not always able to dependably recruit and retain workers who are right for them. Attendants in Pennsylvania are paid an average of $9.10 an hour, and they usually receive no health insurance, sick days, vacation or retirement through their jobs. As a result, turnover rates can be as high as 100 percent and there is no backup system to help people when their caregiver calls off or quits. Executive Order 2010-04 helps address the long-term care needs of seniors and people with disabilities who prefer to use the consumer-employer home care model, and the direct care workers who assist them with independent living. The consumer-employer home care model allows individuals to hire, manage, schedule, train and terminate the home care provider of their choice. "Pennsylvanian's deserve the right to choose the way they receive home care and we have a responsibility to ensure access to high-quality services enabling them to live independently for as long as they wish," Governor Rendell said. "This executive order protects the rights and well-being of consumers by implementing policies to ensure an available, high quality workforce." The order creates the Consumer Workforce Council comprised of seniors and people with disabilities who employ their own attendants to serve as the policy voice to make recommendations to expand the consumer-directed model of home care - especially in regards to the number of available, qualified and reliable home care attendants. It also guarantees the rights of employees to elect a union representative should they so choose. The executive order enables caregivers and consumers to work together to tackle the chronic workforce issues such as turnover, training and benefits in order to help stabilize the consumer-employer home care workforce. View Governor Rendell’s Consumer-Employer Home Care Model Executive Order Control the Chaos Written by: Planning Specialist Suzanne Brown   Are you receiving unwanted telephone solicitation calls at all hours of the day and night?  Is your trash can full of unwanted mail and advertisements?  I have begun receiving calls on my cell phone from credit card companies and yesterday I received an offer in the mail to get a credit card for my daughter who is a college student. Don’t you wonder how these companies even get your contact information and what you can do to reduce or stop unwanted sales calls, advertisements, and solicitations?    Recently I was called by a client who had been contacted by a company she did not recognize.  The representative stated that they would be in her area, and wanted to schedule an appointment to review her “Trust” with her.  This client had done prior legal planning with this office, and was concerned that this call was related to her estate planning. It was not.   We did a follow-up call to the representative directly, and were advised that the company purchases names and addresses from other companies.  It appears that at some point, somewhere, the client gave her name to a company that later sold her name. The representative stated they did not know anything about the person they had called.  The “representative” wanted to meet with the person in her home to discuss their products. What Can You Do To Protect Yourself?   Never allow anyone that you do not know into your home. Do not give your name and address to any company if you do not want to receive advertisements. Never give out any personal information on the phone.  Your bank will never call you to ask for your Social Security number, account numbers or other personal information. If you get a call requesting personal information, notify your bank immediately. Contact your credit card company immediately if you misplace your credit card to cancel the card. Review your credit card statements carefully to make sure that there are not any purchases on the card that were not made by you. (I once had charges on my credit card for computer equipment billed in Australia.) If you are receiving unwanted e-mail solicitations, look closely at the bottom of the e-mail. There is usually an option to “unsubscribe” your e-mail address.    To stop telephone solicitations, contact the National Do Not Call Registry at 1-888-382-1212 from the phone number you want to be registered.  When I called the automated system, it took less than a minute to register.    You may also register on line at https://www.donotcall.gov/ .The registration is effective within 31 days, and is active for 5 years.  If calls continue, you can register a complaint with the Federal Trade Commission at 1-877-FTC-HELP (1-877-382-4357) or at www.ftc.gov. To reduce unwanted junk mail, contact the National Direct Marketing Association Mail Preference Service.  The registration is active for three years. To register by mail, send $1.00 check or money order to the following address: Mail Preference Service Direct Marketing Association P.O. Box 643 Carmel, NY 10512   You can register on line without any fee at https://www.dmachoice.org/dma/member/regist.action To register the name of a deceased loved one, you may contact https://preference.the-dma.org/cgi/ddnc.php .  Use the “continue” option button at the bottom of the screen to get the form.  Although the above contacts will not completely stop the junk mail, it will reduce it significantly.  You may need to contact some companies directly and request that your name be removed from their mailing lists.  For more specific information regarding identity theft, medical privacy, financial solicitations, and debt collections, you may contact the Privacy Rights Clearinghouse at www.privacyrights.org.   Suzanne has been a Planning Specialist with Marshall, Parker & Associates for eight years.  If you would like to learn more about Suzanne, visit Marshall, Parker & Associates’ Staff Page. It's a Boy and a Girl! Marshall, Parker & Associates Welcomes Two New Babies   On September 3, Attorney Grebas  and his wife Gina welcomed their first child, Jude Michael Grebas. Jude weighed 7 pounds, 8 ounces and was 20 inches long.    Then, on September 22, Seth Heasley and his wife Danielle welcomed their daughter, Avery Joy Heasley. She was born with a full head of red hair and weighed 6 pounds, 15 ounces.  Avery Joy joins big sisters McKenzie and Addison at home.   Keep Up to Date with Marshall Elder Law & Estate Planning Blog   At Marshall, Parker & Associates we believe that we can “give back” to our community by providing our clients and their families and advisors with up to date information on the legal issues that affect them.  The laws and regulations that impact the estate planning and elder law concerns of our clients change rapidly. This year has already seen dramatic change with the enactment and implementation of the new health care reform laws. And the development of Marcellus Shale gas is having a tremendous impact on our community. The laws on federal estate tax have become relevant to many additional residents of our area due to the wealth being created by the development of the Marcellus Shale. Federal Estate tax laws will change dramatically in the next few months, although at this moment no one can tell how. In an effort to keep the clients and friends as up to date as possible on these and other critical legal issues,  Marshall, Parker & Associates is increasingly our use of social media (such as Twitter and Facebook) to keep you more immediately informed.  Our lawyer Dale Tice is recognized as one of Pennsylvania’s leading legal experts on the Marcellus and planning for gas royalties. You can follow Dale’s posts on Twitter at http://twitter.com/PAGasLawGuy. Jeff Marshall posts on Twitter on estate planning, elder law, and aging issues, as well as on the Marcellus Shale.  You can follow Jeff’s posts at http://twitter.com/ElderLawGuy.  (Jeff’s posts are also available on the Marshall, Parker website homepage at www.paelderlaw.com.)   Now you can also receive information and guidance from Jeff Marshall at his newly established blog, the Marshall Elder & Estate Planning Blog. The blog includes access to all Jeff’s Twitter “tweets” and much more.  The blog is new and Jeff welcomes (and would appreciate) if you visit and tell him how to make it even more useful and valuable for you. You can comment directly on the blog, or by sending an e-mail to us as webmail@paelderlaw.com     *Attorneys Marshall, Parker, Weber, Grebas and Colbert are Certified Elder Law Attorneys by the National Elder Law Foundation under Authorization of the Pennsylvania Supreme Court. LEARN MORE ABOUT THE CELA STATUS   **In addition to her law degree and CELA status, Attorney Colbert holds an advanced legal degree (LLM) in Estate Planning from the University of Miami School of Law. FIND OUT MORE

DISCLAIMER The comments contained in this newsletter are intended to be of a general nature only, do not constitute legal advice, and no recipient is entitled to rely on them for any purpose. The distribtion and receipt of this e-mail does not create an attorney-client relationship.