Your surviving family members may be impacted by a lack of estate planning once you pass away, having to sort through the complicated issues and estate administration on their own. However, families of color are disproportionately impacted by these estate planning issues.
Since 2020, the number of white American individuals who had a will decreased by 3%, but among black American families that number increased by nearly 20%. That being said, the number of white Americans who have done their estate planning or have a will remains higher than people of color. Only 22% of Hispanic Americans and 31% of black Americans have wills compared with 34% of white Americans.
The Center for Retirement Research at Boston College shares that Hispanic and black individuals are less likely to pass down an inheritance to someone compared to other demographics, but estate planning can make things much easier for your loved ones.
Estate planning strategies that may be used to shelter your assets or minimize your total estate value need to be done now since these can take some time to set up. The IRS will often deeply investigate any planning techniques that are done after a business has had a letter of intent signed with a potential buyer.
Implementing your estate planning strategies well before any offer is documented, usually at least 6-8 months before you anticipate receiving an offer, is strongly recommended. Working with the right Pasadena estate planning and business succession planning lawyers can be extremely important for your next steps.
