Protecting Your Assets for Future Generations
The Estate Plan
Did you know that in 2024, the estate tax threshold is $13.61 million per person? With Trump being re-elected, this generous limit seems likely to endure beyond the 2026 sunset of 2017’s TCJA, continuing to adjust upwards with inflation.
But here’s a question many people ask: Why would I need an estate plan or a will? “I don’t have that kind of wealth,” they might say, or “I’m too young to worry about it.”
The truth is, estate planning isn’t just for the ultra-wealthy—it’s for everyone.
At its core, an estate plan is about ensuring your wishes are followed, not just for your assets but also for your care if something unexpected happens. It provides clear instructions for situations like incapacitation through tools like a Health Care Proxy, Advance Healthcare Directive, or Power of Attorney. And yes, it determines how your belongings—big or small—are distributed after your lifetime.
Without a will or revocable trust, your property is distributed according to your state’s intestate succession laws. This means a probate court decides who inherits your assets based on legal guidelines, not your personal wishes.
Wouldn’t you rather ensure your cherished belongings go to the people you choose?
For those fortunate enough to have wealth above the estate tax threshold, more sophisticated strategies can help preserve assets for future generations while minimizing estate taxes. Popular tools include:
Grantor Retained Annuity Trusts (GRATs) or Grantor Retained Unit Trusts (GRUTs)
Generation-Skipping Trusts (GSTs)
Irrevocable Life Insurance Trusts (ILITs)
Charitable Lead Trusts (CLTs)
Here’s an interesting fact: The estate tax is often referred to as a "voluntary tax." Why? With careful planning, you can avoid it entirely. For example, you could leave assets up to the threshold amount to loved ones and gift the excess to charity—resulting in no estate tax owed.
While these are just the basics, more complex strategies are available to meet unique needs and goals. No matter where you are in life, taking steps to protect your assets and ensure your wishes are honored is a gift not just to you, but to the people you care about most.
We are here to help you prepare, and are just a phone call away.
