As you probably have heard, the federal estate tax rules changed radically in 2010 and will change radically again in 2011 unless Congress passes new legislation. This article will discuss what some of the changes can mean for you.

First, a little background:
The 2001 Tax Act. In 2001, Congress passed legislation which significantly increased the federal estate tax exemption and lowered tax rates. Among other things, the 2001 Act provided:

• In 2009, the estate tax exemption increased to $3.5 million per decedent, with a reduced 45% tax rate on any excess assets.
• In 2010, the estate tax is repealed for one year. In addition, the step-up in basis (which gave a “fresh-start” fair market basis for most assets of a decedent) is replaced with a more complex adjusted carry-over basis system.
• In 2011, the estate tax will be reinstated. However, the tax exemption will drop down to $1 million and the tax rate will jump up to 55%. In addition, carry-over basis will disappear and the step-up in basis will once again be the law of the land.

What Happened in 2009? Estate planners universally expected Congress to extend the favorable 2009 estate tax rules through 2010. However, unexpectedly in December, the House failed to enact 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, it did nothing. Thus, effective January 1, 2010, there is no federal estate tax and the adjusted carry-over basis rules apply.

Estate Planning Is Now in Chaos. Congress’s failure to act in 2009 and the possibility that it will not act this year make for an unpredictable planning environment in which any number of radically different changes may occur.

Here are some of the possibilities:
Congress may do nothing this year. While you probably will not die in 2010, you still need to consider planning for that possibility because not doing so could be disastrous. For example:

• Trust language that allocates your estate tax exemption to a “family trust” could disinherit or place undesirable restrictions on a surviving spouse or other heirs.
• Conflicts could arise on asset basis issues.
• Passing assets directly to your spouse may result in higher estate taxes after 2010.
• Congress may retroactively adopt legislation to carry the 2009 rules over 2010. If a retroactive law is adopted, it will most likely be challenged as unconstitutional and it could take years for the Supreme Court to rule on the issue. Until such a ruling, uncertainty will prevail. In any event, your estate plan should contemplate your dying both before or after a potential retroactive enactment.

Congress may act to address the tax issues, in which case it may:

• Adopt a permanent estate tax exemption. If so, most commentators anticipate the tax exemption will fall between $2-5 million and tax rates will range from 35% to 45%.
• Adopt a temporary estate tax exemption.

What Should You Do? Uncertainty makes it difficult to plan, but waiting to see what happens next is not a good idea. The earlier you can implement flexible tax and estate planning to respond to these changes the better. Please call us to schedule a time to go over your current estate plan and determine what changes need to be made to minimize taxes and to reduce the possibility of future family conflicts in these chaotic times.

Dan A. Penning

I’m pleased to announce that one of Michigan’s premier business journals, DBUSINESS, recently announced its 2010 “Top Lawyers” in metropolitan Detroit – and three of the principals with Wright Penning & Beamer made the list.

DBUSINESS compiles its list as a resource and reference guide for its readers. Selection criteria include:

• legal knowledge
• analytical capabilities
• judgment
• communication ability, and,
• legal experience.

The list was published in the journal’s November/December 2009 edition.

According to the publication, selected lawyers “possess the highest professional ability and ethical standards.”

Dirk Beamer, Lee Flaherty and I were selected this year. Beamer for his expertise in business and commercial litigation; Flaherty for her work with non-profits and charitable organizations, and I was recognized for business and estate planning.

As a founding shareholder of the firm I’ve focused my practice areas primarily in planning for business entities including family businesses, estate planning for business owners, individuals, families with special needs children, and succession planning for family cottages and farms. Through these practice areas our firm has become a leading resource for individual and business clients.

Beamer oversees our firm’s diverse litigation practice, focusing primarily on business and commercial litigation. He spearheads the firm’s efforts in insurance law, unfair competition, trademark infringement, employment matters and contract disputes. Dirk has litigated in state and federal courts across the country. He also counsels business owners and managers concerning employment practices and management.

In addition to her work with non-profits, Lee Flaherty is well versed in real estate, business law, estate planning and probate. Lee’s business expertise encompasses the support of ongoing businesses, business purchases and sales, and representation in commercial real estate transactions. Her estate planning practice focuses on the preparation of a wide variety of trusts and other documents to assist clients in avoiding probate, preserving assets and minimizing taxes.

I take pride in my colleagues’ accomplishments and wanted to share this good news with you. As a firm we continue to strive daily to deliver the highest quality legal services to our clients throughout Michigan and beyond.

Dan A. Penning

It has long been said that the only things certain in life are death and taxes. While most Americans pay any number of local, state and federal taxes while living, depending upon the extent of one’s property and the estate planning techniques used, additional taxes may be owed at death. According to the IRS website, “The Estate Tax is a tax on your right to transfer property at your death.” While the federal estate tax, therefore, has an impact on estate planning, the extent of that impact is currently in a state of flux. While death remains a certainty that all will face, the amount of federal estate tax is not.

In 2001, the Economic Growth and Tax Relief Act of 2001 (the “2001 Act”) was signed into law, significantly changing key provisions of the Internal Revenue Code dealing with the federal estate tax. Changes included an incremental increase in the estate tax unified credit exclusion from the pre-2001 amount of $650,000.00 per person, to $3.5 million per person in 2009, with no federal estate tax at all in 2010. In addition, the top estate tax rate declined from 55% to 45%. However, the 2001 Act contains a sunset provision and is set to expire on December 31, 2010. At that time the federal estate tax exclusion is scheduled to revert to $1 million per person and the maximum tax rate of 55% will be restored.

At 2009 rates, only inheritances above $3.5 million for an individual and $7 million per married couple were subject to the federal estate tax, at a tax rate of 45%. While it was estimated that only 1% of all inheritances would exceed those thresholds (encompassing an estimated 6,000 estates), Congress expected the federal estate tax to generate upwards of $25 billion in taxes in 2009.

Although there is no federal estate tax in 2010, the 2001 Act replaces the federal estate tax with a 15% capital gains tax on property inherited in 2010. Prior to 2010, beneficiaries of appreciated assets received those assets at their fair market value at the time of the decedent’s death (“stepped-up basis.”) Under stepped-up basis rules, the difference in the value of the asset from the time it was acquired by the decedent (the decedent’s “basis”) and the value of the asset at the time of the decedent’s death (the “gain” or “appreciation”) was not taxed as capital gains to the beneficiaries. This total exclusion no longer applies in 2010. While the capital gains scenario for 2010 is complicated and has its own system of exemptions, experts agree that many who thought that the elimination of the federal estate tax in 2010 would amount to a windfall may be in for a surprise.

The new capital gains treatment in 2010 notwithstanding, it is uniformly acknowledged that Republicans and Democrats alike are not going to accept the total elimination of the federal estate tax in 2010. In fact, on December 3, 2009, the House passed the Permanent Estate Tax Relief for Families, Farmers and Small Business Act of 2009, making permanent the $3.5 million per person exclusion, the 45% top tax rate, and stepped-up basis rules. However, the Senate, while focused on healthcare reform in the closing weeks of 2009, did not address the federal estate tax. As a result, the 2001 Act remains controlling — at least for now. Some Democratic Senators have vowed to reconvene early in January in order to pass an act that will be retroactive to January 1. As of this writing, the only thing that is certain is uncertainty.

We at Wright Penning & Beamer will continue to monitor this situation and the impact of future federal legislation on the estate planning needs of our clients. Stay tuned.

Dan A. Penning

Important events require careful planning. For example, what happens to your assets, who will care for your children, will your business survive or will your children be able to protect a legacy asset such as a cottage or vacation property in the event of your incapacity or death all involve critical decisions. Planning “in time” does not necessarily mean that the planning is “on time.” Any ambulance driver will tell you that lying on a stretcher on your way to the hospital is not the time to begin working on your estate plan or business succession plan. On a number of occasions, the importance of timely planning has been dramatically presented to me. In each situation, clients with entirely different types of estates and needs had one thing in common, they waited to plan until it was almost too late. Sometimes the risk of delayed planning “on time” becomes “in time”.

Each of these examples involve critical decisions and require careful planning.

One such client was a mother of two minor children, a business owner and estranged from her husband who suffered from a substance abuse problem. In this article, I will give her the assumed name of Sarah. Sarah cared for her children on a full-time basis, was the sole means of financial support and was self-employed in her own business. Tragically, Sarah was diagnosed with cancer two years ago. She was losing a valiant battle with her illness and had been hospitalized on several occasions prior to the day we met at my office. A mutual friend suggested Sarah contact me to develop and establish an estate plan and business succession plan to protect Sarah, her children and to preserve her business that employed several people.

I first met Sarah on a Thursday morning. She came to my office in a wheelchair accompanied by her sister. This same sister was also caring for Sarah and her children during Sarah’s illness.

After listening to Sarah’s explanation of her situation, I recommended to Sarah that she establish an estate plan to protect Sarah’s assets, provide for the appointment of her sister as Sarah’s children’s legal guardian and adopt a succession plan for her business to give a key employee the chance to purchase the business in the event of Sarah’s death. This planning would insure that Sarah’s assets would not be subject to a claim by her estranged, addicted husband, and that the assets be managed and support her children so that their lives, as much as possible in her absence, would remain stable and financially supported into the future. The business succession plan, notably, provided additional proceeds to be paid over time to support Sarah’s children, but also protected the jobs of her employees who relied on Sarah’s business to support their families.

I copied and collected all the information I needed from Sarah to draft her estate and business plan documents. I advised Sarah that although the process of completing these plans typically can take weeks or even months, given her declining health, I would draft her documents right away. I sked if she could return the following day to review and sign her plans. Sarah responded that she might not live to sign the planning documents the next day. Based on my observations of Sarah during the initial part of our meeting, I had no reason to doubt that possibility.

Together with my staff, I proceeded to prepare her estate and business succession plans for her signature that day. We also coordinated with her financial advisor the transfer of assets into a Trust created by Sarah for her children’s benefit. It was quite an emotional day. My staff and I raced against each precious moment that passed to consolidate Sarah’s planning process into one day. Sadly, Sarah died the next day. Fortunately, Sarah’s plan continues to govern and support her children and business as well.

During the span of my career, I’ve drafted estate and business plans solving various issues for clients to avoid significant problems. I have reviewed and obtained signatures in critical care units of hospitals, nursing home rooms and literally, in one case, we obtained a client’s signature on his estate planning documents while walking beside his hospital gurney as he was being wheeled to the operating room for emergency heart surgery. While I have many success stories for people who planned “in time”, there are extraordinary risks involved in not planning “on time”.

Dan A. Penning
231.271.4500

As we quickly approach the end of the year, you may want to consider the following information that could impact the amount of income tax you pay for the year 2009.

Home Energy Tax Credits

The American Recovery and Reinvestment Act (Recovery Act) enacted earlier this year expanded to home energy tax credits which are the Non-Business Energy Property Credit and the Residential Energy Efficient Property Credit.

The Non-Business Energy Property Credit. The Non-Business Energy Property Credit equals 30% of what a homeowner spends on eligible energy saving improvements, up to a maximum tax credit of $1,500.00 for the combined 2009 and 2010 tax years. Certain high efficiency heating and air conditioning systems, water heaters and stoves that burn biofuel along with labor costs for installation of these items all qualify as energy saving improvements and qualify for the credit. In addition, the cost of energy efficient windows and skylights, energy efficient doors, qualifying insulation in certain roofs also qualify for the credit.

By spending as much as $5,000.00 before the end of the year on eligible energy saving improvements, a homeowner can save as much as $1,500.00 on his/her 2009 Federal Income Tax Return. Due to the limits placed on tax liability, other credits claimed by a particular taxpayer and other factors, actual tax savings may vary. These tax savings are on the top of any energy savings that may result.

The Residential Energy Efficient Property Credit. Homeowners who are interested in “going green” should also check out a second tax credit designed to spur investment in alternative energy equipment. The Residential Energy Efficient Property Credit equals 30% of what a homeowner spends on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines and fuel cell property. In addition, all labor costs are generally included when calculating this credit. Finally, no cap exists on the amount of credit available except in the case of fuel cell property.

Eligible homeowners can claim both of these credits when they file their 2009 Federal Income Tax Return. Because these are credits, not deductions, they increase a taxpayer’s refund or reduce the tax he or she owes. An eligible taxpayer can claim these credits regardless of whether he or she itemizes deductions on Schedule A. Use Form 5695, Residential Energy Efficient Property Credit to figure and claim these credits. A draft version is available now on irs.gov.

First Time Homebuyer Credit

If you are in the market for a new home, you may still be able to claim the First Time Homebuyer Credit. Congress recently passed the worker, home ownership and business assistance act of 2009 extending the First Time Homebuyer Credit and expanding who qualifies.

Here are the top ten things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it:

1. You must buy, or enter into a binding contract to buy a principal residence, on or before April 30, 2010.

2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.

3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.

4. A long time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you lived in the same principal residence for any 5 consecutive year period during the 8 year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.

5. The maximum credit for a long time resident is $6,500.00. However, married individuals filing separately are limited to $3,250.00.

6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available for taxpayers with modified adjusted gross incomes up to $125,000.00, or $225,000.00 for joint filers.

7. The IRS will issue a December, 2009 revision of Form 5405 to claim this credit. This December, 2009 form must be used for homes purchased after November 6, 2009, whether the credit is claimed for 2009 or 2010, and for all home purchases that are claimed on 2009 returns.

8. No credit is available if the purchase price of the home exceeds $800,000.00.

9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.

10. A dependent is not eligible to claim the credit. For more information about the Expanded First Time Homebuyer Credit, visit irs.gov/recovery.

Estate Planning Review

Generally speaking, your estate plan should be reviewed at least every 2 years to determine whether it needs to be changed or updated.

Additionally, if any of the following events occur, you will probably need to update your estate plan (i.e., your Living Trust, Will, health care documents, powers of attorney, life insurance coverage and post mortem letters).

* Divorce
* Marriage or remarriage
* Birth/adoption of a child
* Death of a spouse or child
* Sale of residence or purchase of new residence
* Retirement
* Enactment of new tax laws*

*The current law regarding estate tax is due to expire at the end of December 31, 2010. There are several legislative actions being taken to address the estate tax law. Stay tuned for further updates.

Here are some of the steps you may need to take:

1. Change the Successor Trustee of your Living Trust or Personal Representative of your Will.

2. Revise your plan to account for an increase in assets.

3. Reassess your life insurance needs.

4. Add or change a power of attorney.

5. Change legal documents to comply with state laws if you move to a different state.

6. Change Trust and Will instruments to account for changes in beneficiaries.

Pre-Retirement Checklist

In the event that you are considering retirement in the near future, there are various matters that you should consider. Here are some of the items that you should be aware of:

1. Health Insurance. Will you continue to be covered by your health insurance after retirement? If not, you will need to replace that coverage.

If you’ll be eligible for Medicare, you will want to start checking up on “Medigap” coverage. Before you retire, take care of any non-emergency medical, dental or optical needs if your employee plan coverage is broader then Medicare.

2. Other Insurance. Once you retire, you may need to replace employer provided life insurance by added life insurance. You should also consider purchasing long term health care insurance to cover the risk that you will need a lengthy nursing home stay in the future.

3. Social Security. Decide whether you want to take social security benefits if you are retiring before your full retirement age. You can get 80% of your benefits at age 62. For most people, taking social security benefits at their full retirement age makes the most financial sense. Be sure to discuss this with a financial adviser if you think you might need to take early benefits.

4. Company Plan Pay Out. It is important to plan well in advance how you will take the pay out from your pension plan or 401K plan. In most cases, it is advisable to transfer funds to an IRA in that you can transfer the funds “in kind” which maintains the character of the investments but yet allows you to name beneficiaries who could ultimately take advantage of the “stretch out rules” for income tax purposes. You should speak with your legal or financial adviser regarding these strategies.

5. Relocation. If you are planning on moving to another state, check out the various states to see what financial ramifications of living there will be. If you are relocating it may be a good idea to buy a new home before retirement.

Dan A. Penning

On December 3, 2009, the House of Representatives passed a bill introduced by Rep. Earl Pomeroy (D-ND) that addresses the federal estate tax: H.R. 4154 – “A bill to amend the Internal Revenue Code of 1986 to repeal the new carryover basis rules in order to prevent tax increases and the imposition of compliance burdens on many more estates than would benefit from repeal, to retain the estate tax with a $3,500,000 exemption, and for other purposes.” This straightforward bill, which has no cosponsors, provides for the following:

- Repeal of the 2010 repeal of the federal estate tax as provided in the Economic Growth and Tax Relief Reconciliation Act (“EGTRRA”).

- Maintaining the $3,500,000 federal estate tax exemption in 2010 and beyond.

- Freezing the maximum gift tax rate and estate tax rate at 45%.

Legislation enacted in 2001 gradually phases out the estate tax and ultimately repeals the tax in 2010. However, without congressional action to make the repeal permanent, the tax will revert in 2011 to the pre-2001 rates.

There are currently 16 bills that address estate tax reform in various ways circulating in the House of Representatives and three circulating in the Senate.

Under current law, a $5 million estate in 2009 would pay $675,000 in federal estate taxes, according to an analysis by Deloitte Tax. In 2010, no estate tax would be due, but the estate would be subject to a 15 percent capital gains tax. In 2011, the $5 million estate would pay $2,045,000 in estate taxes, according to the analysis. Under this House bill, $675,000 in estate taxes would be due, regardless of which year the estate is inherited.

With the current estate tax law expiring after 2010, H.R. 4154 provides certainty to help business owners plan for the estate tax and it maintains stepped-up basis. However, a $3.5 million exemption per person and a 45 percent rate do not provide adequate protection for many small businesses and farmers. In addition, the $3.5 million exemption is not indexed for inflation; protection from the estate tax will erode each year.

Often, it is not a pile of liquid assets (cash) that is taxed, but the land of a family farm, personal effects, or the capital and assets of a family-owned small business. Without the cash on hand to pay these taxes, heirs are forced to sell off businesses and small farms that have been in the family sometimes for generations.

Estate taxes fall disproportionately on small business owners and farmers because many of the assets are illiquid. For example, approximately 80 percent of farm assets are land based. Surviving family members may be forced to sell land, buildings, equipment, livestock, etc., to keep their businesses operating. In many cases, however, the assets that must be sold to pay the estate tax are the most important inputs needed to maintain the business.

Employing the proper estate planning techniques can minimize and sometimes eliminate the federal estate tax burden on your estate. The attorneys at Wright, Penning & Beamer have assisted numerous families and businesses in regards to protecting the assets they have worked hard to earn during their life, minimizing the impact of adverse tax consequences. The result is maintaining the value of these assets that our clients work hard to acquire.

Dan A. Penning

P.S. Check out the IRS’ 2010 Auto Mileage Deduction Rates Below:

The Internal Revenue Service has issued the 2010 optional standard mileage rates that are used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning Jan. 1, 2010, the standard mileage rates are:

50 cents per mile for business purposes
16.5 cents per mile for medical or moving purposes
14 cents per mile in service of charitable organizations

The 2010 rates for business, medical and moving purposes are lower than last year’s, reflecting generally lower transportation costs compared to a year ago.

On September 2, 2009, John Buckley, Chief Tax Counsel for the House Ways and Means Committee, shared his opinion regarding the future of the federal estate tax: “I think you will probably see a one-year extension based on the statutory pay-go.” Mr. Buckley was referring to the Statutory Pay-As-You-Go Act of 2009 (H.R. 2920). This bill passed the House in June, 2009. If enacted, it will undo some currently scheduled expenditures and tax provisions, including the previously scheduled permanent extension of the estate and gift tax at 2009 levels.

The permanent extension of the $3.5 million exemption, coupled with the 45% top estate tax, would cost the government $233 billion over 10 years. With a ballooning federal deficit, it is quite probable that the Senate will not pass a permanent estate tax extension but will instead extend the 2009 estate tax provisions for one more year.

This one-year “patch” still leaves the estate planning world in a state of uncertainty. With the large budget deficit numbers, Congress could decide to enact new legislation to revert the estate tax credit to its pre-Bush administration level of $1 million beginning in 2011. If that happens, individuals need to carefully review their estate plans and be in contact with their estate planning attorneys to determine the full impact such a reduction in the credit will have on their estates at death.

Stay tuned for ongoing updates regarding the status of the federal estate tax as Congress wrestles with it in the future.

Dan A. Penning

Michigan Trust Code Becomes Law

On June 18, 2009, the new, Michigan Trust Code (MTC) was signed into law by Governor Granholm. In adopting the MTC, Michigan becomes the 23rd state to revise its laws pertaining to trusts in order to reflect the Uniform Trust Code as promulgated by the National Conference of Commissioners on Uniform State Laws. The MTC recognizes that revocable trusts in particular have become increasingly popular as a means to settle one’s affairs at death, as opposed to nothing more than a simple Will.

Although the MTC totally replaces existing Michigan black-letter law pertaining to trusts, only a few provisions of the MTC are significantly different from current law.

The first change deals with the mental capacity of a person to make a trust and a Will. Whereas Michigan law has recognized different standards in the past, the MTC clearly provides that the same standard of capacity will apply to both Wills and trusts. And, that standard has been modified to bring it in line with the standard of capacity to execute other estate plan documents such as powers of attorney.

The second change recognizes the authority of “trust protectors.” A trust protector is a person or persons designated in the trust with the authority to direct certain actions under certain circumstances. The authority of a trust protector can thereby supersede the authority of the trustee. Although Michigan attorneys have used the concept of trust protectors in the past, their authority has never been recognized under Michigan law. The MTC provides for, and recognizes, the authority of trust protectors.

As with EPIC, many of the provisions of the MTC are default rules, that is, fallback rules that will apply in the event that the creator of the trust does not provide otherwise. As with prior law, however, there are a number of rules that cannot be modified by the creator of the trust.

If you have not created an estate plan, or have not reviewed or updated your plan in recent years, now is an excellent time to make sure that your wishes for the disposition of your assets at death are properly secured.

Dan A. Penning

Just the other day, I met with a new client. “Beth” is the young daughter of long-standing clients, just turned 18 and off to Michigan State University in a few days to start her freshman year. Beth was in my office to sign her very first General Durable Power of Attorney, Health Care Power of Attorney and Release for medical information.

Beth came to see me not because she’s an astute and responsible young person, although she is certainly both of these. She came in because her parents had recently watched friends, whose 18-year old son suffered devastating injuries that landed him in intensive care, be denied access to any information about their son because he was now an adult. Beth’s parents were deeply alarmed and asked me how their family could avoid ever being in that horrific situation. The answer was simple: Beth, if she was willing, needed to sign powers of attorney giving her parents authority to access her information and to act for her should she be unable to act for herself.

Many parents don’t realize that once their kids turn 18, they are responsible for their own decisions and all of their information becomes private. If you have an 18-year old, for instance, you may discover that you can no longer set your child’s medical or dental appointments. You will certainly discover that you cannot call your child’s school and find out whether tuition has been paid or what their grades are. And, most importantly, you will not be able to make a health care decision or get information from a hospital or doctor unless your child is capable of giving that permission at the time.

General and health care powers of attorney, which give you power to speak and act on behalf of your child, are the answer. They are something that every adult should have and are relatively simple documents to put in place. You do so much to prepare your kids for college. Please don’t neglect this important detail!

Lee Flaherty

A few weeks ago I posted a blog about my oldest son, Tucker, and his experiences in a high school hockey tournament and about how through perseverance, commitment and hard work he achieved success and assisted his team in winning a tournament semi-final game.

I also quoted various statements by Dr. Alan Zimmerman that appeared in his weekly newsletter entitled “Tuesday Tip” on success. Dr. Zimmerman commented that one must observe four key elements in order to achieve success which are to “toil awhile; to endure awhile; to believe always and to never turn back”.

April is Autism Awareness Month. I have three sons, all of whom are special, unique and from my prejudice view, great kids. One of my sons, a 14 year-old twin, Casey, is autistic. As I reflected further on my blog about my oldest son’s hard work and achievement of success on the ice, I began thinking about challenges that individuals who are autistic, like my son Casey, face minute-by-minute, hour-by-hour and day-by-day. The significant factor that makes autism so difficult to deal with is that it is a spectrum disorder that is not the same for any two individuals. There are varying degrees of autism and how it manifests itself in people.

Children with autism may act in some unusual ways. Some may have difficulties with certain activities, but they may have strengths in other areas. For instance, a child with autism may be a math wiz, a great artist or unbeatable at computer games. Still, they may have trouble putting their thoughts into words or understanding what you say.

Some children with autism prefer that schedules stay the same or that people always sit in the same seats and they have a difficult time when things change. Changes may be scary for them, so they may try telling others what to do or where to sit. When schedules change and they do not know what is coming next, they are very upset, sad or angry.

Some children with autism do not see, hear, or feel things the same way we do. For instance, the sound of a school bell or the noise of a parade may hurt their ears. Some may have trouble eating certain foods because of the way they taste. Others may be very sensitive to certain smells. Smells we like, such as cookies baking, may make them feel sick. On the other hand, things that bother most of us, like a bee sting, may not appear to be as painful to them.

No one knows why some people have autism, and there may be many difference causes. Scientists are still trying to find out just what those causes are and how to best help people with autism. Approximately 1,500,000 people in the United States have autism, and it is more common in boys then girls.

In my previous blog I reflected on my son, Tucker’s experience in his hockey game, stating “it occurred to me that his path to success in that situation mirrors how we, as adults, should pursue success”. Being the parent of an autistic child, I have been blessed to witness Casey’s hard work, dedication and perseverance to be successful. On occasion, I have the good fortune of either driving my son Casey to his junior high school or picking him up after school. Even though he struggles mightily to keep the world around him in order in his own mind to be able to function and make his way through the day, he always cheerfully exits the vehicle, instructs me to have a great day, throws his backpack over his shoulder and marches into his school together with approximately 800 other junior high students. Given Casey’s challenges, I can’t begin to understand the courage it must take for him to make it through each and every day.

Casey is “successful”. The measure of each person’s success is relative to the courage and hard work that gets them through their problems. Often times children with autism are referred to as “special needs children”. In our family, we don’t think of Casey as having “special needs”, we think that Casey has special gifts that we as a family learn from and are inspired by each day.

While we hope and pray for medical and other related advancements to identify autisms cause and a cure, let’s not forget to celebrate the inspiration these individuals can provide to us in our every day lives.

Dan A. Penning (aka proud father)