Many individuals like to have a plan for anticipated major changes in life. For some, estate planning is important for the inevitable event of someone's passing. When creating a plan, many folks in California wonder about how estate taxes could affect them and whether proposed changes could alter existing plans.
The estate tax only affects a small number of wealthy individuals. Less than one percent of estates will be affected by this tax since the current threshold is $5.6 million. Two plans are circulating, one in the House and the other in the Senate, that will either double the limit or eliminate it altogether. Some experts worry that the elimination of this tax could affect charitable giving in the United States. Typically, wealthier individuals use charitable giving to avoid paying the estate tax.
However, estate planning offers much more than tax benefits. This end-of-life planning can offer asset protection to individuals, and this is only one of the reasons to take a look at planning. People who have already made plans to charitably give their income in excess of $5.6 million may wish to review their documents and keep an eye on upcoming changes in legislation.
In California, people often prepare for the end of life with estate planning. This can ensure that one's heirs will continue to benefit from the accumulated assets from one's life. Creating such a plan comes with many details to consider, and many individuals choose to use an experienced attorney for help with managing all the options.
Source: clevelandjewishnews.com, "Proposed tax code to double exclusion amount or eliminate estate tax", Becky Raspe, Nov. 21, 2017