Goal Isn’t Necessarily Tax Avoidance

Tax exemption doubled but that does not eliminate the need for estate planning.

There are many reasons for tax planning other than avoiding taxes. This is because most people were not subject to the federal estate tax anyway. Kiplinger recently listed some of those reasons in “Is Estate Planning Now Dead?“

Those reasons include:

• A few states still have estate and inheritance taxes of their own. Some of them have lower thresholds than the federal exemption limit. People in those states might need to plan around those taxes.
• In many states, probate is a very expensive and time-consuming process, giving people good reasons to get an estate plan that avoids probate completely.
• Estate planning is also a good way to avoid any particular issues that might come up with an unplanned estate. For example, if any heirs have potential problems, like financial or drug issues, estate planning can help make sure that any inheritance is not wasted.
• Estate planning is also the best way to avoid fights between family members over who should get what from the estate.

An estate planning attorney can advise you in creating an estate plan that fits your unique circumstances and meets your reasons for creating an estate plan.

Reference: Kiplinger (May 1, 2018) “Is Estate Planning Now Dead?“