You need to look at your estate from an overall financial point of view. Ask yourself how much money you’ll need, if you own a business and whether or not your property will go where it needs to go upon your death. A lot of people assume they don’t need an estate plan, but everyone’ personal and financial situation is different. So, looking at your own financial situation may help you decide if an estate plan is right for you or not.
Will You Owe Estate Tax?
If your estate is valued at over $5 million, you definitely need an estate plan. An estate plan protects your loved ones from paying estate tax on their inheritance. Your estate planning attorney can help assess your taxes due and create a plan to minimize them as much as is legally possible.
Do You Own a Business?
If you own a business, you need to plan for it after you pass. Who will inherit the business? Will it continue to run after your death? Creating an exit plan or strategy with your estate planning professional can protect your business.
Do You Have a Large Retirement Fund?
Retirement funds with over $200,000 or more should be covered in an estate plan. This will ensure these assets are allocated to the right individuals and all tax implications are covered.
What is Your Life Insurance Policy Like?
A large life insurance policy can pass tax free – but only for income. Your beneficiaries could still be liable for estate taxes associated with any funds in your retirement account.
Meet with an estate planning attorney to consider the financial well-being of your estate and for your loved ones’ sake.
- Bill Nye the Science Guy on Wearing Masks in Public - July 11, 2020
- Low-Interest Loans: An Estate Planning Technique - June 23, 2020
- Irrevocable Medicaid Trusts - June 16, 2020
Leave a Reply