Question – “Why do I need an estate plan? The government increased the estate tax exemption so none of the inheritance I/we leave will be taxed…right?”
Answer: This very valid question is one that many of us are asking ourselves given the current law on estate tax exemptions. I think that the best way to answer this question is to explain what estate planning really is, and to note a couple of pitfalls that may arise if we rely on the recent changes in Federal Law in making our estate planning decisions.
So without further ado…here are 5 reasons an estate plan can help you regardless of how much of an inheritance you are leaving to your loved ones.
- Estate planning helps you maintain control of your property while you are alive regardless of your age, health or financial condition.
- A properly executed Estate Plan will provide your instructions for how you want take care of both you, and your loved ones in the event of a disability.
- Estate Planning will help ensure that you can give what you have to who you want, when you want, and the way you want.
- A well thought out and regularly reviewed Estate Plan can help protect you from changes in the Law that affect the taxation and protection of your assets.
- Estate Planning helps keep you and your loved ones safe from unnecessary court costs, professional fees, and taxes to the State (some States have “death” taxes that may be due regardless of if you are exempt from Federal taxes).
As you can see, Estate Planning is a lot more about people and how you want them to be taken care of than Federal tax laws. Empower yourself by taking the time to review your estate plan for these objectives, and reach out to an Estate Planning Attorney to help you through the process. You can find our contact information by clicking here.