We're coming out early with our Spring Newsletter, to encourage you to be early with your annual gifts and other estate planning decisions this year. Here are two-and-a-half reasons for acting promptly:

1. Compounding. Those who make annual gifts early, give more. Let's say Betty and Frank have been giving each of their four children $20,000 at the end of each year. These gifts might be in the form of cash, family partnership interests, or any of a number of forms. This year they decide to give in January, rather than in December. If their gifts earn a 10% return by income or growth, then giving $80,000 in January is as good as giving $88,000 in December. The difference becomes more meaningful over time. The additional $8,000 each year, has a compounded value of some $125,000 over ten years.

2. Possible law changes. President Clinton's budget bill proposes to knock out several widely-used estate planning techniques: the family partnership, the "Crummey" trust, and the personal residence trust. The early indication is that any such law change would "grandfather" planning done before the date of enactment. It is impossible to predict the legislative outcome, but those who want to make arrangements under current law would be wise to act soon.

2-1/2. Other contingencies. Action delayed may become action denied. Illness or other pressing matter may interfere. It's an unfortunate truth that, for each of us, there will come a year when there is no end of the year.

If you would like to get going on your annual gifts and other estate planning decisions, please call the lawyer with whom you work, or one of our Trusts & Estates lawyers: Al Falk, Alan Macpherson, Mario Parisio, Eileen Peterson, Sandy Rovai, or Bill Whitman. Our toll-free number is (800) 240-5051.

Best wishes for a happy and prosperous 1998.

PS: We've had a few clients ask whether they could pay for legal services with their credit cards (and so get some frequent-flier miles with their estate planning). The answer is yes - just mention it to your lawyer, and we'll take care of the details.