Here is some good news for those of you who are contemplating an update to your estate plan. The process has become a bit more predictable than it used to be.

In 2013 Congress passed legislation that made the estate tax exemption of $5 million permanent and created a provision to adjust this figure yearly for inflation.

In 2015, Americans can leave up to $5.43 million upon death without owing any estate tax. What’s more, spouses can combine their exemptions so that they can leave or give away almost $11 million upon death.

As a practical matter, this means that roughly means 99.5% of estates will not owe any federal gift or estate tax.

The permanent exemption ended the worry that some Americans experienced about how much they could protect from what seemed to be yearly changes in the estate-tax exemptions – and in some cases extreme changes – when they died. The stability of the estate tax, however, doesn’t eliminate the need to periodically review your estate plans.

Why You Should Update Your Estate Plan

Here are some good reasons why you should take an annual look at the provisions of your estate plan:

  • There has been a change in your marital status.
  • There has been addition in your family through birth, adoption or marriage.
  • You have moved to a different state.
  • Your children are no longer minors.
  • There has been a substantial change in the value of your assets.
  • You have received a significant inheritance or gift.
  • You are retiring.
  • You want to create any additional trusts.
  • You want to change your executor.
  • You need to put additional assets into a living trust so these assets can avoid probate.

You may also want to modify or create a living will, which expresses how you want to be treated in certain medical circumstances including life-sustaining treatments in the event you are terminally ill or injured.

You may also want to create or change your durable medical power of attorney that names someone to step in for you in the event that you are incapacitated either permanently or temporarily.

Learn More…

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How Your Money Can Buy Happiness

Contact Us

For a free consultation and to speak with one of our investment advisers, please call(858) 509-9500 or submit a contact form.

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