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Estate Planning: Now or Later?
With the recent electoral change in America many people are wondering how the Obama administration will affect estate planning. If you are a retiree considering retirement-plan'>planning for your estate you want to make certain that you are getting the best deal without any unnecessary estate taxes.
Sure, taxes are a big problem and the new Obama administration has suggested that an increase in proposed tax rates will be put into effect. However, there is so much more to estate planning than just taxes.
Essentially estate planning affects the ownership and distribution of your assets including your house. If you have children and grandchildren then estate planning is essential. Do you really want the courts deciding who gets your estate once you pass?
Didn’t think so.
So should you begin planning your estate and distributing your wealth now or later? The answer is both.
Estate Planning Now
Regardless of the tax increase, planning your estate now is your best bet if you are a retiree or over a certain age. In case of an accidental or sudden death you want to ensure all your assets have been distributed evenly.
This will provide you with a certainty on what’s to come and will also avoid any sibling battles over your assets. There’s nothing worse than causing a family rift because you were not ready and your will was not made.
Taxes are important, yes, but if you base your decisions around the tax rate then you may end up losing more than just your rights to your assets. You’ve worked hard all your life so that your children or grandchildren will have the best future possible. Don’t let the courts, or the government take that away from you just because you were hoping for a tax reduction.
Furthermore, the general principles of estate planning will remain the same whether you do something now or later. Keep in mind that historically, stock have bounced back 25 percent in the first six months after a recession. If you are worried about the estate value, it’s better to set up a trust fund now and work with what the economy throws at you in the future.
In the end, it’s not you who will be losing out; it’s your children, especially if you do not take action.
Estate Planning Later
Estate planning is a continual process. You can change, re-arrange and transfer your trust funds as you get older and the world around you changes. You can watch the economy rise or fall and base your decision on this.
The important thing is that you have a back up will and estate plan to fall on in case something does happen to you. There are enough expensive to deal with after your death without hiring lawyers and attending court to distribute your assets. You don’t want to put your family through that, especially at such a hard time in their life.
Estate planning now will ensure that all matters are taken care later. Rest easy knowing your estate is in the hands of those who love, not in the courts.