Here is one good reason to think about estate planning now: whatever you don’t plan for, the government will tax. The government has increased the amount you can pass down in your estate without taxation to $11.58 million per person, or $23.16 million per couple. This is almost double of what was previously allowed.
“Oh, I don’t want to pass down my assets,” you might think. “I want to enjoy them.”
Okay, I get ya. But you can still enjoy assets you have transferred to your heirs with a good estate planner. And think about the possibility of gifting an heir a $1 million share that becomes worth $10 million in a few years. That appreciation happens tax-free! With the right estate planning!
Under the Trump administration, passing down large portions of your estate without taxation is doable. Under a potential democratic administration, this will most likely not fly. Think Bernie Sanders and how much he loves tax-free wealth and you have some incentive to think this through!
We don’t AT ALL want to get political but when we are talking about your money, you have to think through who is in power, what their values are, and how it effects your bottom line. Vote your conscious, whatever that means. But plan for possibilities, no matter what!