Last week I wrote about taking the opportunity with the changing of the seasons to begin or revisit your estate plan along with questions to guide this process. Another key component to be aware of while creating or changing your estate plan is significant changes in tax law. Here are a few to keep in mind:
Beginning in 2018, federal gift and estate tax exemptions were changed significantly. These exemptions are scheduled to be drastically reduced on January 1, 2026, but this change may occur even earlier.
Also, under the current law, income tax deferral opportunities in relation to inherited retirement accounts have been limited.
People who implement their estate plan without considering or adapting to short- or long-term changes in legislation may face negative unintended consequences as a result.
Tax minimization is, of course, one of the goals for most people with their estate plan. However, other issues not related to taxes might take a high priority for many people. Your estate plan has an impact on your family’s future. Keeping things less difficult and stressful for your family, having your estate settled in an efficient manner that is as cost-effective as possible, and protecting both your beneficiaries and assets from lawsuits or divorce are highly important goals for one’s estate plan.
As the weather continues to get warmer and brings renewed energy and focus, this is an excellent time to create or update your estate plan. For help with your estate plan, contact us at Wilson and Wilson Estate Planning and Elder Law, LLC at 708 482 7090 for our main office in LaGrange, Illinois or at 847 656 8958 for our Northbrook, Illinois office.