Chances are your family is not going to have to pay federal estate taxes if you died tomorrow. That is unless your estate is worth more than $5.34 million in 2014, since that is the exemption for an individual. It jumps to $10.68 million when married.
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As such, you may wonder why you would need an estate plan.
There are lots of reasons, says an article on citizensvoice.com, written by a Pennsylvania financial advisor.
These include:
- Many states impose their own estate taxes that kick in at lower levels then the federal tax.
- Estate planning deals with issues that will affect you before you die. These include durable power of attorney, health care proxy and a living will. These help protect you and your assets if you should become incapacitated.
- An estate plan ensures that your assets are distributed the way you want.
The article urges people to find an estate planning attorney and start by drawing up a will. However, a trust is also recommended to keep the proceedings out of probate court, a costly and time consuming process.
If you have estate planning questions, feel free to call us for a consultation at (626) 696-3145.
