If you are like a lot of people you have a to-do list. Passing away is certainly something that will be permanently etched at the bottom of the list. However, this does not mean that estate planning should be next-to-last.
Estate planning is something that many people put on the back burner, and surveys indicate that most Americans have not executed all of the necessary estate planning documents. A significant majority of people who are under the age of 50 have not planned ahead for something that is definitely going to happen.
People pass away when they are in their 20s, 30s, and 40s every day. Sometimes these people have young children who are dependents. They often have spouses or domestic partners that they leave behind.
Young families these days are generally going to require two incomes to maintain their standard of living. If one income suddenly vanishes, the survivors can be placed in an extremely vulnerable financial position.
While young people are more remiss than their older counterparts, many older Americans are going through life without the proper planning. In addition to this, there are those who put a plan in place years ago. Their lives have changed in the meantime, but they have made no revisions. The estate planning documents that they stuffed away in lock boxes and filing cabinets decades ago are now obsolete.
Put Procrastination Behind You in 2014
Sometimes inertia can set in, but the new year can shake things loose. Now that we are in 2014 people are following through on certain resolutions that they have made. Perhaps this would be a good year to take action with regard to your estate plan if you are not currently prepared.
Estate planning involves arranging for the effective and efficient transfer of your financial assets to your loved ones after you pass away. This can involve providing for specific individuals in different ways depending on the circumstances.
Death taxes can also be a factor for some families. There is a federal estate tax that carries a $5.34 million exclusion. If your assets exceed this amount you would be exposed.
Here in the state of New York we also have a state-level estate tax to contend with, and the exclusion is much lower at just $1 million.
If you are currently going through life without an estate plan, or if your current plan could use a revision, we would like to invite you to contact our firm to schedule a free consultation.
We will become apprised of your situation, answer all your questions, and help you map out a plan that provides you with peace of mind.
If you do nothing, you will be neglecting one of the core responsibilities of adulthood for yet another year.
- Three Tips to Provide Inheritance Planning Insight - June 11, 2021
- Veterans Pension Can Defray Long-Term Care Costs - June 7, 2021
- How Can a Special Needs Trust Trustee Use the Funds? - June 3, 2021