Will You Still Need Estate Planning if the Estate Tax is Abolished?

President Trump’s campaign platform expected an abolishment of the estate tax. This could lead some individuals to think that they won’t need estate planning in the event that he is able to follow through on his promises. The current estate tax sits at 40% and Trump intends to repeal it. The estate tax laws that were in place for 2017 were actually established four years ago. These allow exemptions of up to $5.49 million for an individual and $10.98 million for a couple in 2017. 

When a spouse passes away and leaves everything to their spouse, there is also no tax collected. This means that repealing the estate tax would only have significant implications for those individuals with a net worth higher than $11 million. This is why whether or not there is a federal estate tax in place, you will always need the essentials when it comes to estate planning. remember that estate planning is about more than what happens when it becomes time to pass on your property to individuals you love after you pass away.

It is also about establishing important documents like powers of attorney and healthcare proxies so that individuals are equipped to make decisions on your behalf if you become incapacitated. With or without an estate tax in place, you will need to approach the estate planning process to consider your individual issues such as your personal property, management of your pets, assisting with special needs, planning for a child, handling your digital afterlife and many other issues associated with the estate planning process.

 

The Biggest Mistakes That Executors Make

Who you choose to serve as the executor of your personal estate is an important selection. It is one that needs to be made with careful planning and after a consultation with your estate planning lawyer. Unfortunately, executors can make mistakes in the management of your estate and this could add to additional frustration or anxiety for your loved ones after you’ve passed away.

This is why it is essential to identify someone who is not only comfortable with managing your estate but who will also have the interest to do so. Serving as an estate executor is an important responsibility. Some of the most common mistakes associated with executors include:

  • Not understanding the probate process and failing to hire an attorney.
  • Having no clear outcome in mind such as settling with heirs, maximizing the estate value, paying off the taxes or getting peace of mind.
  • Waiting too long to market your real estate.
  • Securing and maintaining real estate without understanding the responsibilities.
  • Choosing friends instead of experienced professionals to do the right job such as a probate administration attorney.
  • Not submitting paperwork or documents in an appropriate time period.

All of these can have significant ramifications for the beneficiaries of your estate. It is important that the person you select or choose as your executor has confidence in their own abilities to manage it and has the time and interest to do so.

 

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