Creating a will, trust, or any type of estate plan has always involved dealing with an uncertain future. Consider that just 25 years ago, the estate tax had an astonishing 55% rate with only a $600,000 exemption. Back then, tax-driven estate planning was a mathematical necessity for a large segment of the population.
Fast forward to 2022. Not only do we now have a generous $12.06 million exemption for individuals and a lower 40% rate, but we also have potential legislation that would cut that exemption to half in 2026. So, what does this mean for you, as you’re planning for the future?
The High Estate Tax Exemption Means No Need to Plan…Right?
Nothing could be further from the truth! Although there was a lot of tax-driven planning in the past, in recent years estate planning has largely focused on preserving family unity, protecting assets, ensuring privacy, and effectively passing along financial and emotional legacies.
● A divorcing spouse of one of your heirs taking advantage of family wealth.
● Family discord lurking under the surface that tears your family apart, especially after the death of the patriarch or matriarch.
● A lawsuit, judgment, or bankruptcy that causes your family to lose their inheritance.
● Alzheimer’s or another cognitive impairment affecting you or someone else in your family.
Meza Talbott Law
A Family + Estates Firm
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