Estate planning isn’t dead, not by a long shot. The tax deal made in Washington in December 2010 was a major change. It should change the way many people will view estate planning. It shouldn’t make anyone ignore estate planning, but for many it should cause them to take a broader view.
Traditionally, for many people estate planning means estate tax reduction. They figure if their estates aren’t going to be hit with federal estate taxes, they don’t need a plan. Now, with estates up to $5 million ($10 million for married couples) exempt from the federal estate tax, they’re tempted to think they don’t ever need to visit an estate planner.
As I’ve said for many years, estate planning is about much more than taxes. You need a plan even when estate taxes will be zero. Perhaps the best effect of exempting most estates from federal taxes is that planners and their clients can focus their time on the non-tax issues of estate planning. Here’s a review of the top issues that should be considered in your estate plan regardless of the value of your estate.
The New Focus of Estate Planning