I read a very good article in Money Magazine entitled:
Rethinking your estate plan
A smaller net worth and bigger worries about your kids' finances (not to mention uncertainty about taxes) have major implications for your estate plan.
In the article the author posed 5 questions that one should ask when rethinking their current estate plan. These same questions should be posed if you have not done your estate plan. I will cover each question over the next 5 days.
1. Part A. SHOULD I GIVE NOW OR SHOULD I GIVE LATER?
"Estate planners used to advise relatively affluent people to give some money or other assets to their intended heirs while everyone was still alive. The reason: taxes. Giving now reduces the size of your taxable estate, beefing up the total amount that goes into your heirs' pockets. (You can give up to $13,000 per recipient per year tax-free, or $26,000 for a couple.)
But because the federal estate-tax exclusion rose to $3.5 million this year - up from $2 million in 2008 - and could be extended for at least another year, taxes probably aren't a pressing concern for you right now. Instead, you should be thinking about whether your diminished assets will be enough to take care of you."
Obviously now, in this economy, you want to make sure you have enough money for you before you start giving it away. So, planning becomes even more essential. Leave a comment or contact us at http://www.ythlaw.com/
Rethinking your estate plan
A smaller net worth and bigger worries about your kids' finances (not to mention uncertainty about taxes) have major implications for your estate plan.
In the article the author posed 5 questions that one should ask when rethinking their current estate plan. These same questions should be posed if you have not done your estate plan. I will cover each question over the next 5 days.
1. Part A. SHOULD I GIVE NOW OR SHOULD I GIVE LATER?
"Estate planners used to advise relatively affluent people to give some money or other assets to their intended heirs while everyone was still alive. The reason: taxes. Giving now reduces the size of your taxable estate, beefing up the total amount that goes into your heirs' pockets. (You can give up to $13,000 per recipient per year tax-free, or $26,000 for a couple.)
But because the federal estate-tax exclusion rose to $3.5 million this year - up from $2 million in 2008 - and could be extended for at least another year, taxes probably aren't a pressing concern for you right now. Instead, you should be thinking about whether your diminished assets will be enough to take care of you."
Obviously now, in this economy, you want to make sure you have enough money for you before you start giving it away. So, planning becomes even more essential. Leave a comment or contact us at http://www.ythlaw.com/
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