Is estate planning the right word, maybe it is?

One definition of estate is an extensive area of land in the country, usually with a large house, owned by one person, family, or organization. Another definition is all the money and property owned by one person. When you think of the word estate, your first thought is the land definition. So does the dual definition make an estate planning sound like something only people with extensive areas of land do? Well, it is not. 

No matter what your age or net worth, you need an estate plan to protect yourself, your loved ones, and your assets—during your lifetime, as well as after your death. Creating a will is part of an estate plan and everyone needs a will. Here are some random thoughts about estate planning 

Did you know that how you have assets structured could impact financial aid for your kids college? This include inherited or gifted assets. 

Without proper planning for a disabled child, an inheritance could jeopardize government benefits such as Supplemental Security Income payments, and possibly medical benefits. 

Inherited Traditional IRA’s come with a tax liability. You will have a tax decision to make, taking an IRA as a lump sum could send you into a new higher tax bracket. 

What is the most important reason to fine tune your estate plan? There is a reasonably good chance, estate taxes are going up, so if you didn’t think this would apply to you, think again, your estate could be subject to very high estate taxes. Sorry, I know I bring everything back to taxes! 

Remember you do not need an “estate” to have an estate plan. What is your plan? Although I cannot replace a good estate attorney, I can get your started, give you issues to think about, and certainly save you on some billable hours. Please reach out for your complementary analysis.