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Estate Planning Fatigue May Prevent Some From Taking Necessary Steps

Posted on in Estate Planning

Lombard estate planning attorneyAccording to a CNBC.com survey, over one-third of high-net-worth families have failed to take even basic steps to provide for their loved ones when they die and to ensure that their final wishes are granted. More specifically, 38 percent of people with over $1 million or more in assets have not created an estate plan.

Many people do not realize the ways a comprehensive estate plan can help them and their loved ones, while others mistakenly believe that they do not make enough money to qualify for an estate plan. Another reason many otherwise financially-savvy people do not have an estate plan is because it can be exhausting and overwhelming to try to plan everything on your own. Studies show that some individuals suffer from what is called “estate planning fatigue” which makes them less likely to have up-to-date, enforceable estate plans.

Constant Changes to the Federal Estate Tax Laws Have Been Confusing

In 2010, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act into law to help Americans cope with the recession. In 2013, the American Taxpayer Relief Act (ATRA) made permanent changes to the laws regarding federal estate taxes, transfer taxes and gift taxes. Most recently, the new federal tax law doubled the amount of money that is exempt from the federal estate tax. The exemption level is now approximately $11 million for an estate of an unmarried person and $22 million for a married person.

Some people have been understandably frustrated by changing estate tax laws and have therefore procrastinated getting their estate in order. If you are overwhelmed or unsure as to the best way to avoid or minimize paying estate taxes, an estate planning attorney can help you understand your options.

Estate Planning is Important Regardless of the Size of Your Estate

Estate planning refers to drafting documents that protect a person’s assets, provides for their children’s future, and specifies their wishes regarding end-of-life decisions. If a person passes away without an estate plan, surviving family members are left to guess what the deceased would want. This can cause unnecessary stress and arguments within the family while they are still trying to grieve the passing of their loved one. Parents with children under the age of 18 should at least have a last will and testament which names a guardian for the children in the event that both parents pass away before the children are adults. There are many good reasons to do non-tax estate planning including to address property management, protect assets, and to address potential future disability or cognitive decline.

Everyone Can Benefit from Estate Planning Tools

Not every estate planning tool will be valuable to everyone, but everyone can benefit from some type of estate planning. Meet with an experienced Lombard estate planning lawyer to begin planning your future and that of your family. Call us at 630-426-0196 to schedule a confidential consultation at A. Traub & Associates today.

 

Sources:

https://www.cnbc.com/2015/06/29/wealthy-suffer-from-estate-planning-fatigue.html

https://www.thebalance.com/exemption-from-federal-estate-taxes-3505630

http://money.cnn.com/2018/01/09/pf/taxes/estate-tax/index.html

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