For many people, today’s uncertain times can be a source of anxiety, with inflation, international conflict, and political uncertainties creating a question about whether decisions today will still be wise in future years. Estate planning in these uncertain times calls for thoughtful and creative estate planning. This article will summarize thoughts on how to do this as published at Kiplinger.com, see
Recognize that regulatory frameworks can change.
- The Tax Cuts and Jobs Act of 2017 increased the estate tax exemption.
- The Secure Act 1.0 and 2.0 made changes to inherited IRA’s, minimum distributions, trusts and more.
- The 2024 Presidential Election may have implications for your estate plan.
- Navigating these changes can create challenges for your estate plan, but it can also create real opportunities for strategic and advanced planning.
Creative Estate Planning Requires an Understanding of How the System Works
- Many tax-advantaged estate planning strategies involve giving up some control of your money to protect it.
- After spending years accumulating money and property, it may be difficult to give up that control, especially when times of turmoil may have decreased its value or may make you worry about future drops.
- One strategy is to focus on long-term planning and concentrate on the signals (for example, markets generally rise), and not the noise (daily fluctuations in value).
What Is the Focus of Effective Strategies
- Flexibility is the key to long-term planning. Know what your goals are to make sure that your documents are drafted in a way to accomplish your goals and provide flexibility to adjust for changes in those goal.
- Balance is a second key to long-term planning. Be reactive but not over-reactive. Many proposed changes do not come to fruition, so be aware that you may need to silence some of the media noise of proposed changes that may never be realized.
- Staying diligent is the third key to long-term planning. Many people wish that estate planning were a one-time event that they could check off their list, but the most effective estate plans are re-evaluated regularly. Revisit your estate plan regularly to make sure that it is still aligned with your goals and regulatory changes.
Contact an Experienced Estate Planning Attorney
At the Law Office of David Knecht, we make it our business to stay up-to-date on regulatory changes that impact estate planning. We will customize a plan to help you find creative solutions to meet your estate planning goals, and we will work with you to keep it current and responsive to regulatory changes. Contact us today at 707-451-4502.
