The advent of a new year often means new tax laws that will have an impact on estate planning strategies. January of 2020 was no exception with the enactment of the Setting Every Community Up for Retirement Act, known as the SECURE Act of 2019. The act has implications for the disbursement of funds from certain retirement accounts and may impact plans for protecting assets in California.
It is January, the month for resolutions. Addressing the issue of creating an estate plan is occasionally one of those resolutions and is one that people in California should keep. People often have the mistaken thought that they don't have assets worth protecting and therefore don't need a plan. Estate Planning is something every adult should consider as almost everyone has something worth protecting.
Another new year has arrived, and many people's thoughts turn to the future as they consider goals and accomplishments to be pursued in the coming months. For many in California, this may include the task of estate planning. While contemplating one's passing may not be appealing, failure to plan can result in increased heartache for loved ones and drawn-out legal proceedings in settling one's estate. This can be both financially and emotionally costly to loved ones.
Another year is ending and many people take the opportunity to review estate plans as they head into the new year. One question that frequently arises concerns any tax changes to be aware of and any steps that can be taken regarding protecting assets and reducing estate taxes. There is a new law taking affect that may have an impact on Californians.
As people go about their lives they grow up, embark on a career, raise a family and throughout all of this amass assets to bequeath to the next generation. It can become a legacy that one hopes will benefit the next and future generations. Real estate is often part of a person's estate. While inheriting real estate can be rewarding in California, there are rules that must be followed and tax implications to be aware of. Following the rules and being aware of the tax laws can go a long way toward protecting assets.
As the year draws to an end in California, one's thoughts may be drawn to a review of the year almost passed and plans for the year about to begin. Plans for the new year may include taking steps to protect one's family for the future. No one relishes the idea of contemplating the end of his or her life, but the fact remains that no one gets out of this life alive. Engaging one's family in estate planning may be difficult to contemplate, but it will help make a difficult time easier for all involved.
Much has been written about how people can learn from the mistakes made by celebrities who passed away without having created an estate plan. Something that is less prevalent is being able to learn from celebrities who have planned well. Estate planning is not something that should be left until one's later years in California. Luke Perry, the actor, was only 52 years old when he died but had apparently already put into place a very comprehensive and well-thought-out plan.
Once upon a time a person could go to school, grow up, work for a company and then retire with a pension. Pensions have, for the most part, given way to 401(k) programs that rely in part on the investment knowledge of the individual. This can make the question of growing and protecting assets a daunting and confusing question for some people in California.
There is one word that frequently comes up in conjunction with creating an estate plan: procrastination. That procrastination can prove to be a fatal mistake. There was another well-known personality in California whose recent death drove that fact home. John Singleton, a well-known filmmaker, passed away at the age of 51 from apparent complications due to a stroke. He had procrastinated estate planning, and this has caused public family disagreements over the filmmaker's estate.
Family structures in California have become more complicated in recent years. With second marriages, children from second marriages and the respective extended families, estate planning needs to take all of these considerations into account. While many aspects of an estate can be affected by family structure, real estate ownership may deserve a little bit of extra attention.