Wills, Trusts & Estates: Plain and Simple – Is Now, Finally, the Time to Address Estate Planning?
February 17, 2021
Once the Presidential election was over, you decided that the probability of the federal gift and estate tax exemption decreasing from the current level of $11,780,000, retroactive to January 1, 2021, was slim, and you held off rushing to address your estate plan by the end of 2020. That may have given you some breathing room, but the exemption is still scheduled to go down to $5 million (indexed for inflation) on January 1, 2026, or sooner, if President Biden has his way.
Now that you have time to think about it, without feeling rushed, you should address your estate plan sooner, rather than later. With the prospect of the federal gift and estate tax exemption decreasing to about $6 million (or, even as low as $3.5 million under some proposals), and the potential for gift and estate tax rates to go higher than the current 40%, it certainly does make sense to review your estate plan now.
Reprinted with permission from Lloyd Harbor Life, February 2021.
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