Sometimes, simple is not best. Estate planning should be tailored to meet the needs of your life, and sometimes that life is complicated. Advanced estate planning may be right for you.
A simple plan typically includes a Will, a durable power of attorney, a healthcare power of attorney and/or a living Will. But basic estate planning covers basic needs.
One goal of advanced estate planning is to reduce potential estate taxes. Prior to tax reform, estates valued below the exemption limit of a little over $5 million did not pay estate taxes. Post tax reform, the exemption is now a little over $10 million.
That increase is great. But anyone with an estate that even approaches the exemption limit could benefit from advanced estate planning tactics designed to reduce estate taxes.
If so, you might consider one of the following wealth-transfer strategies:
The trusts mentioned above may not be the only solution or best solution available to you. Before entering into a trust, seek advice from a lawyer who understands the implications.
Asset protection tactics are a big part of advanced estate planning and include:
Advanced estate planning requires coordination between all components of your plan.
An estate plan should meet your needs depending on your circumstances. A simple Will isn’t enough for someone with a high net worth estate or complicated family structure.