"Everybody should think about their
estate regardless of the level of assets," says Barry Fischman, a partner
at accounting firm Marcum. "The biggest hurdle is psychological. People
say, ‘I'm not ready to do anything. I want to maintain control until the day I
pass.' You have to have these conversations that really have nothing to do with
the law, but have to do with the emotional attachment and control."
Is this the calm after the tax
storm of 2012 now that the estate tax laws seem to have finally found a safe
harbor after so many years of indecision? Maybe you are breathing easier now
and settling into the new tax law format. But what about your estate plan?
Don’t get too comfortable just yet – a review of your estate plan is a wise
call before you can rest easy.
As you may have heard, the
midnight compromise signed into law just before the tax law shifted back ten
years into the past, otherwise known as the American Taxpayer Relief Act of
2012 (or ATRA 2012), finally set estate laws and wealth transfer taxes into
stone. While “permanent” and “tax law” may seem a bit oxymoronic, the deal
struck in stone is at least better than the silly putty in play for a decade.
A recent Reuters article titled “New estate tax rules call for new planning
tactics” is a clarion call to review your estate planning. Some of the
tax changes may have created some unintended consequences you ought to
investigate, especially with the more generous federal estate tax exemption
amount.
Remember, estate planning is a
process, not an event. A review of your estate plan is crucial from
time-to-time, so don’t postpone this check-up.
For more information and articles on
estate planning and elder law topics, please visit our website
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Reference: Reuters
(February 26, 2013) “New estate tax rules call for new planning
tactics”