Skip to main content

What to Expect from Estate Planning in 2018



Hello everyone and a happy 2018 to you! I hope you enjoyed the holiday season and this new year is off to a terrific start for you and your loved ones, thus far. I would like to consider a few items to watch regarding estate planning for 2018, so you and your family can be completely protected.


The Death Tax
The death tax has been in a state of flux ever since the early 2000s when the Bush administration’s first tax cuts changed the exemption and tax rates. The recently-passed Tax Cuts and Jobs Act is the latest significant change. Starting January 1, 2018, the estate tax exemption amount will double to $11.2 million per person (married couples have $22.4 million of combined exemption). Like the current exemption, this amount will adjust annually for inflation. However, this enhanced exemption expires on December 31, 2025, at which time it will return to an amount similar to the $5.49 million per person exemption we’ve had in 2017. Similar to what happened when the Bush tax cuts phased in (and were scheduled to expire) during the 2000s, we’ll face the same situation over the coming years – the law provides a deadline and timetable, but political activity may result in something entirely different. Regardless of your stance on this new tax law, if you have a plan based around the now-old rules, it’s time to visit with us, so we can make sure the plan still meets your needs and goals while maximizing the benefit to your family, charities, or other beneficiaries.


Incapacity Planning
What happens if you don’t die? Historically, much of estate planning focused on what happened to your assets after your death. With cognitive impairment at near epidemic proportions, you must plan for the contingency that you don’t die and instead require assistance managing your affairs. Depending on your circumstances, this could range from a relatively simple matter of ensuring you have a trusted person authorized to make decisions to extensive planning to become eligible for help paying for nursing home care. Either way, now is the time to work with us to ensure that your plan protects you, even if you don’t die.


Giving Your Family Lifelong Financial Security
Although you may not have a “large” amount of wealth now, you probably have an IRA or a life insurance policy. A modest IRA or life insurance policy could be the foundation for lifelong financial security for your family. To make this a reality, you need to set up your affairs with the proper structures to ensure money avoids costs, taxes, and the risk of financial immaturity or ignorance. We are here to help you ensure that the savings you’ve spent a lifetime building will be there for your family.


Fixing Broken or Old Trusts
Many people have inherited assets from parents, aunts, uncles, and others through a trust. Some of these trusts may use old strategies or be expensive or difficult to administer. The law recognizes that old trusts may need some refreshing. There are many options available to modernize an old trust, and the best way to get started is to meet with us so we can explore which option is best for you and the trust you inherited. Further, we are pleased to offer a Maintenance Plan to our existing clients, so please contact us for additional information about this service.

2018 will likely be an exciting, dynamic year! No matter where you are on the estate planning journey, carve out some time to talk with us to make sure that you and your family are fully protected. Give us a call today at 619-810-4644 or visit our website at www.ignaciolaw.com. 





Comments

Popular posts from this blog

Planning for Pets

An estate planning attorney strives to provide clients with excellent service and a comprehensive estate plan that will protect all of their interests. We conduct extensive interviews to get to know our clients, and take the time to truly understand their needs and the nuances of their particular situation. The good estate planning attorney truly leaves no stone unturned; no loose ends. Planning for Animals Planning for an animal is actually very similar to planning for a minor child. However, in most cases children grow up to be independent adults who can take care of themselves. That is not the case with animals, which is why planning is so critical. Animal Care Trust The central component of many estate plans is the revocable living trust, and planning for an animal will generally take the form of incorporating additional provisions for an Animal Care Trust. There are instances when it is appropriate to set up a separate, stand-alone Animal Care Trust, but these situations
Estate Plans for College Students and Other Young Adults Why It’s the Perfect Time to Set Your Kids Up for Success It can be exciting to see your children branching out and becoming successful adults in their own right — a time full of hard work and self-discovery that hopefully lays the groundwork for a fulfilling career in the coming years. But, it can also be a time of anxiety for some parents. We all want to know that we are doing absolutely everything we can to make sure our kids stay safe, healthy, and secure so they can pursue their dreams to the fullest. Preparing for legal adulthood Whether your child is just turning the corner on their senior year of high school or they’re already in the midst of their undergraduate studies, their 18th birthday undoubtedly marks the transition to adulthood when it comes to their legal affairs. This can impact you as their parent in a few distinct ways: ●       Medical decisions: When your children

Why Your Estate Planner Needs to Know If You’ve Lent Money to Family

Let's talk about money - or the loaning of money. Many children and grandchildren are skipping the traditional bank and obtaining loans from parents or grandparents.   Unfortunately, we have all heard stories of families torn apart because of disagreements over money. So, what can you do to make sure your intra-family loans help — rather than hurt — your family? As far as estate planning is concerned, money you lend to others is legally an asset. If you have lent money to a family member the presence of these assets in your estate can be problematic for your surviving family members. This is because your executor and successor trustee are under a legal requirement, known as fiduciary care, to collect the outstanding obligation, even if the other party is a family member. If the amount of money that you have lent out is significant -- and “significant” can be relative -- it is important to let us know as we help you plan your estate. For example, if you wish to forgive th