Unless your estate is worth more than $5,340,000 in 2014, it won’t incur federal estate taxes. (If you’re married and federal estate taxes remain a concern, keep in mind that proper planning may allow you and your spouse to shield up to $10,680,000 from these taxes.) If federal estate taxes aren’t an issue, you may be wondering whether you need to bother with estate planning. The answer: Yes, you do. Here are three reasons why: ■ First, many states, including New York, impose their own estate or inheritance taxes that kick in at lower levels than the federal estate tax and may affect your family. ■ Second, estate planning is about more than what happens after you die. Documents such as a durable power of attorney, health care power of attorney, and living will help protect you and your assets if you should become incapacitated and need someone to make decisions for you while you’re still alive. ■ Third, an estate plan strategy helps ensure your assets — no matter how much or little you may have — are distributed according to your wishes. If you die without a plan, your state’s laws will dictate who gets your assets, which is unlikely to match your wishes. Take something as simple as a savings account. If it’s held in your name alone, the probate court will determine what happens to that money — regardless of the fact you told one of your children, for example, that he or she would get it.
Posted on: Mon, 22 Dec 2014 13:36:44 +0000
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