Estate Planning for the Wealthy

estate planning

Estate Planning for the Wealthy

When was the last time you looked at your estate plan? If you can’t answer that question, either because it’s been so long that you can’t remember or because you still don’t have an estate plan in place, then you have some work to do. With the New Year almost here, now is a great time to take a closer look at your estate plan, or to start one, if you haven’t already. Estate planning is important for everyone, especially if you have a lot of wealth and you want to control what happens to it after you pass on. To that end, let’s take a look at some of the important tips to keep in mind for your estate plan.

Estate Tax Could Be Eliminated

Before we get started, there is one important factor to be aware of regarding estate planning and taxes. Now that Donald Trump has been elected president, there could be some changes coming to the estate tax laws: namely, he wants to eliminate the estate tax completely. Currently, any assets that exceed $5.45 million are taxed at a 40 percent rate for one’s beneficiaries. That money would be tax-free if Trump’s proposal is passed.

Remember Your Will

One of the first steps you should take is to draw up a will. That seems like a no- brainer, but the fact is nearly 70 percent of all adults in America as of November of last year did not have a will. Without a will, your estate will end up being divided in probate court and likely won’t end up where you intended.

What About Beneficiaries?

Of course, you get to choose who inherits your money, so make sure you choose wisely and specify which assets go to whom. It’s always a good idea to reevaluate your plan whenever a major life change occurs, such as a new child, a divorce or marriage or a death in the family.

Trust the Trust

Setting up a trust is always a good idea if you have a large estate. Having a trust, with a trustee, allows you to determine how your assets are used and protect them from being abused or misused after you’re gone. There are several types of trusts, but permanent or irrevocable trusts usually provide the most tax benefits. However, when you place assets in such a trust they become the property of the trust, which means they are not subject to estate taxes.

Consider a Roth IRA

Another smart move for many people is to convert a traditional IRA to a Roth IRA. The money from a traditional IRA is taxable if it’s transferred to anyone other than your spouse. However, you can avoid this by slowly converting traditional IRA accounts to Roth IRA accounts.

Give it Away Before You’re Gone

One of the best ways to protect your money and other assets is to give it away before you pass away. You can give away up to $14,000 per person in gifts every year. Those gifts will decrease the value of your estate and they are tax-free for the recipients. You can also donate your assets to charitable causes, which also provides a nice tax break. For more estate planning ideas to protect your wealth contact GROCO for help.

Follow GROCO on Facebook

Posted in

Add These Leadership Skills for 2021

As we begin to exit the pandemic, are you looking to grow or enhance your leadership skills this year? If so, it is vital to have a plan as no one can expect to become a better leader just by showing up every day. Here are some important things to focus on in 2021. These leadership…

Workplace Accountability in Four Steps

Have you encountered a co-worker, boss or employee, who slacks off, unloads their work onto others, or takes credit for work and ideas that are not their own?  Accountability in the workplace can often seem a bit too scarce, especially when the competitive drive kicks in. Or perhaps, someone that works hard, but never seems…

What’s Love Got to do with Leadership?

What is the most important attribute of a good leader? While it is difficult to single out one overarching attribute, according to leadership author, Lolly Daskal, “The single most important factor that differentiates a good leader from a great leader is LOVE.” Truly exceptional leaders know how to lead with love. One of the main…

Raamel Mitchell

Episode Transcript of: Raamel Mitchell Alan Olsen: I’m here today with Raamel Mitchell from Microsoft welcome.   Raamel Mitchell: It’s great to be here with you Alan.   Alan Olsen: So Raamel for the listeners, can you give the background of your work experiences start from college on and how you got to where you…