So, why is estate planning so critical at this moment? President Biden has proposed that the estate and gift tax exemption essentially be cut in half. Whether that happens in one bill or several it is highly desirable to do what is necessary to legally protect your assets and reduce the overall taxation on those assets which may include your business or practice and on the estate. Creating a strategic estate plan that reduces the impact of Biden’s new proposal takes time. Rather than working on your tax plan and estate plan separately, it’s extremely important to combine the two as one heavily influences the other. This means in addition to scheduling time with your tax advisor, you’ll also need to coordinate with your family attorney to ensure the changes are all documented legally.
If you’ve worked hard to create an estate that can be built upon for generations to come, estate planning is the only way to ensure that your assets won’t be dramatically reduced by taxes. Take the time to plan and implement strategies that can reduce or eliminate your taxes before new legislation is passed. What are boxers told before they begin to fight: protect yourself at all times. Same advice applies here.
We can help you understand and evaluate the risks you are willing to take and understand how different risk reduction strategies can help. We work with your legal and accounting relationships When appropriate insurance products may be recommended.