E333 April 28

E333 April 28, 2010 1. Federal Estate Tax Rules Changed Radically in 2010 2. Recent cases. AG use of force reports are public records 3. Exigent circumstances may allow search of car State v Lewis 4. New NJ Traffic Violation Takes Effect for Failure of Motorists to Stop for Pedestrians 5. Next events: Comedy Night Friday, April 30, 2010 6 Join the Edison Community Pool 1. Federal Estate Tax Rules Changed Radically in 2010

By Saul Simon Here some information on 2010’s estate tax reform:

As you may have heard, the federal estate tax rules changed radically in 2010, and could change radically again in 2011 unless Congress passes new legislation. This letter is intended to advise you of what has happened and encourage you to contact us, so we can work with you and your tax advisor to tailor a particular estate plan that will work best for you.

Estate planning practitioners almost universally expected Congress to carry the 2009 estate tax rules across 2010. However, unexpectedly in December the House failed to act on a one year extension and instead sent the Senate a bill to make the 2009 rules permanent. Because the Senate was focused on health care and there was broad disagreement in the Senate on what to do with estate taxes, Congress enacted no changes. Thus, effective as of January 1, 2010, there is no federal estate or generation­skipping tax (GST). The generation­skipping tax (GST) is an additional that is imposed on some asset transfers, including assets transferred directly from a grandparent to a grandchild.

Congress's failure to adopt estate tax legislation in 2009 and the possibility that changes will not be adopted during 2010, radically change the estate planning considerations of many clients.

The following is a summary of the current estate and gift tax law:

∙In 2009, the estate and GST exemptions increased to $3.5 million per decedent, with a flat 45% estate and GST tax rate on any excess. The gift tax exemption was $1.0 million, with tax rates from 41% to 45%.

∙In 2010, the federal estate and GST taxes were repealed for one year. The gift tax $1.0 million exemption remained, with a lower flat tax rate of 35%. Thus, you have to die or pay gift tax to get the benefit of the change. The step­up in basis rules (which gave a "fresh­start" fair market basis for most assets of a decedent) was replaced with an adjusted carry­over basis. These new basis rules permit a step­up in basis of up to $1.3 million, plus an additional $3.0 million for certain spousal transfers at death. ∙Unless Congress enacts new legislation in 2010, then on January 1, 2011, a number of automatic changes occur to the federal tax code, including: ∙The estate tax exemption drops to $1.0 million per decedent. ∙The estate tax rate increases (e.g., 55% above $3.0 million and 60% above $10 million).

∙States which remain "coupled" to the federal estate tax will have their state death taxes restored. Thus, if you own property in one of these coupled states, you could have new exposure to a state estate tax. ∙The fair market value step up in basis returns for assets passing from a decedent.

∙The top income tax rates go up by at least 4.6%, capital gain tax rates go up by up to 5% and dividend tax rates go up by up to 24.6%.

No matter what happens to the estate tax, tax increases are looming. A $12+ trillion deficit is projected for the next decade. The Congressional Budget Office indicates that the Social Security trust fund will pay out more then it receives starting in 2011 or 2012. Taxes will have to increase across a broad range of Americans.

Saul M. Simon CFP®, CFS, RFC ­Private Wealth Advisor Simon Financial Group 333 Thornall St. Suite 9 B Edison , NJ 08837 Phone: 732­623­2070 Fax: 732­623­2088 simonsays@LFG.com www.saulsimon.com 2. Recent cases. AG use of force reports are public records O’Shea v West Milford 410 NJ Super. 371 (App. Div. 2010) The Attorney General's guidelines, policies and procedures requiring the completion of "Use of Force Reports" (UFRs) and their maintenance in the files of police departments have the force of law for police entities, rending such documents accessible under the Open Public Records Act (OPRA), N.J.S.A. 47:1A­1 to ­13. Therefore, UFRs do not qualify, generically, under the "criminal investigatory records" exception of OPRA. 3. Exigent circumstances may allow search of car State v Lewis __ NJ Super. ___ (App. Div. 2010) A­2066­08T4 (2­08­10) Where police stopped vehicle at night in a neighborhood known for drug sales based on evidence providing probable cause to believe vehicle contained drugs, persons other than the occupants who also had reason to believe the vehicle contained drugs may have had access to the vehicle, and there was a substantial question whether other police officers would have been available to detain the occupants while an application was made for a warrant, the State established the exigent circumstances required to justify a search of the vehicle under the automobile exception to the warrant requirement. Moreover, the validity of the search was not affected by

the fact that drugs were found in a closed leather case because, when the automobile exception applies, the police may search every part of the vehicle and its contents that may conceal the object of the search.

4. New NJ Traffic Violation Takes Effect for Failure of Motorists to Stop for Pedestrians

By Blair Lane, Esq. Effective Thursday April 8, 2010 a new law in New Jersey requires motorists to stop and remain stopped for pedestrians in a crosswalk.

The old law only required that motorists yield or slow down for pedestrians. The new law brings mandates that drivers must stop and remain stopped for pedestrians at intersections and crosswalks. Pedestrians, in turn, must use due care and not jaywalk or step into traffic outside of those crossing points.

NJSA 39:4­36 states:

(1) The driver of a vehicle shall stop and remain stopped to allow a pedestrian to cross the roadway within a marked crosswalk, when the pedestrian is upon, or within one lane of, the half of the roadway, upon which the vehicle is traveling or onto which it is turning. As used in this paragraph, "half of the roadway" means all traffic lanes conveying traffic in one direction of travel, and includes the entire width of a one­way roadway.

Motorists who violate the law face a $200 fine, plus court costs and 2 points on their license. They can also be subject to 15 days of community service and insurance surcharges.

5. Next events: Comedy Night Friday, April 30, 2010 8:30 pm Live from Howard Sterns "MISERABLE MEN's SHOW," The Rev. Bob Levy, Shuli, Paul Dellangelo and Beetlejuice.

Tickets are $25 per person, snacks and munchies included. This is definitely an over 21 show. Get tickets at the Edison Elks Lodge.

5/1 Muddy Marathon and 6 mile trail run Craigmeur.

The Half­Marathon starts at 10:00 AM. Two loops of the delightfully scenic course.

The Quarter ­ Marathon starts at 12:00 PM. One loop of 6.55 miles Post Drink Refreshment will be supplied by Cricket Hill Brewery. http://sites.google.com/site/xxctrailseries/ Local Directions ­ 1175 Green Pond Road, Newfoundland, NJ 07435 5/2 NJ Marathon and Relay­ Long Branch Relay­ Start Time: 9:00am Start/Finish Location: On the Long Branch ocean Promenade near the Hotel, the Ocean Place Resort & Spa. Monday, May 03, 2010 RECENT CHANGES IN MUNICIPAL COURT LAW: 2010 – NJ Law Center New Brunswick 5:30 PM to 9:00 PM New Jersey Law Center, New Brunswick Speakers include: HON. JOAN ROBINSON GROSS, PJMC (Union County) Chair, Supreme Court Municipal

Practice Committee (Union County) KENNETH A. VERCAMMEN, ESQ. Past Chair, NJSBA Municipal Court Section Chair, ABA Elder Law Committee Past GP Solo Section Attorney of the Year

2006 NJSBA Municipal Court Practitioner of the Year K. Vercammen & Associates

NORMA M. MURGADO, ESQ. Chief Prosecutor (Elizabeth) Assistant

Prosecutor (Woodbridge) JOHN MENZEL, ESQ. Moore & Menzel WILLIAM G. BRIGIANI, ESQ. Brigiani, Cohen & Schneider This informative guide to Municipal Court practice and procedure will familiarize you with the most recent developments affecting cases that are heard in Municipal Court.

An authoritative panel of experienced attorneys will be joined by a Presiding Municipal Court Judge to explore a wide variety of matters that you are likely to encounter. They will also bring you up to date on recent developments you need to understand in order to effectively represent your clients.

Program Preview: • Criminal Case Law and Legislative Update • The Prosecutor’s Perspective: DWI, no­insurance cases, recent directives from the Attorney General and Prosecutor, plea agreements in drug cases, double jeopardy issues • Judicial Perspective: Expert arguments, important court rules, common errors by defense attorneys and prosecutors, how to impress the court and not annoy the court staff • Recent developments in traffic law, merged traffic tickets and more • DWI and Chun

• Ask the Experts Tuition fees Reg. Fee Reg. Type Seminar # S1507­15378 Register by 3/31/10 $109.00 EB GENERAL TUITION (REG) $169.00 REG NJICLE SEASON TICKETS (STX) 1 Season Ticket(s) STX MEMBERS, CO­SPONSORING SECTION (COS) $119.00 COS* MEMBERS, NJSBA (NJB*) $129.00 NJB* MEMBERS, NJSBA YLD (YLD*) $119.00 YLD* Recent admittees (past 2 years) (YL) $145.00 YL Paralegals (PAR) $119.00 PAR Law Students (with Student ID) (STU) $0.00 STU Full Time Judges (JUD) $0.00 JUD Seminar number S1507­15379 Presented in cooperation with the NJSBA Municipal Court Section and the NJSBA Young Lawyers’ Division DOOR REGISTRATIONS: $189 Advance registration closes at noon of the day preceding the program. After that time you may still register, space permitting, for the Door Registration Fee. PLEASE CALL FIRST to confirm the seminar schedule and space availability.

New Jersey Institute for Continuing Legal Education The non­profit continuing education service of: The New Jersey State Bar Association Rutgers ­ The State University of New Jersey Seton Hall University One Constitution Square New Brunswick, New Jersey 08901­1520 Phone: (732)214­8500 Fax: (732)249­0383 CustomerService@njicle.com

•

6 Join the Edison Community Pool now and save!

The Metuchen Branch YMCA and the Edison Elks are once again pleased to co­sponsor the Edison Community Pool, located on Old Post Road in Edison. They look forward to serving the South Edison Community and surrounding areas this summer, 2010.

Facilities The newly renovated Edison Community Pool located on Old Post Road in South Edison is surrounded by a wooded picnic area. The facility boasts a 25 yard, 4­lane pool, water slide and a kiddie pool for youngsters. Bathrooms with showers and a snack area with vending machines are conveniently located around the pool area. A sand­filled volleyball court, basketball courts and playground make this swim club a place for family fun.

Dates and Hours of Operation The Edison Community Pool will open for members on weekends

beginning Saturday, May 29 through June 16 from 11:00 am­8:00 pm and Sundays from 12­8pm. Beginning , June 17, the pool will be open weekdays from 12:00 pm­8:00 pm through Labor Day, September 6.

Register by April 30th,And Save! $50 for previous members or returning Family Members$25 for previous members or returning Seniors and Individuals10% Discount for YMCA Members 20% Discount for Elks Members

Membership Type (Proof of age may be required at the discretion of YMCA management) Family 2 adults sharing a household with dependent children under the age of 22 years with proof of full­time college student status as of 5/1/09. Multiple families living in one dwelling will require separate family memberships.

Family Plus Same as above plus one additional person who permanently resides with the family (grandparent, aunt, uncle, au pair, etc) *Proof of residence required Individual

2010 Fees

$365.00

$420.00

$200.00

10 years or older Senior Citizen

$135.00

Any resident over 65 years of age

Senior Couple

$220.00

2 senior citizens over 65 years of age residing in a single

residence Swim Team Program Fee: 1 Child $50.00 or family rate $70.00 Active Edison Elk #2487 lodge members receive a 20% discount and Metuchen

members are entitled to a 10% discount. Valid membership cards are required to receive discount at time of registration.