Estate Planning is Still Important

Some people think that there is no longer a need for estate planning. This kind of thinking could end up getting some into trouble though. Many think that the new law that adds portability of the lifetime exclusion amount between spouses replaces the need for estate planning. There are several reasons that this is not necessarily true.

• These provisions are temporary
• The portability provision requires election that an executor might easily miss
• There are complications if a surviving spouse remarries.
• Many states have lower estate tax than federal estate tax
• Trusts can provide various benefits.

See Lisa L. Clark, Estate Planning A Thing of The Past? Think Again, Auburn Reporter, Nov. 30, 2011; See also Brian Spring, Estate Planning is Not Obsolete, Wealth Strategies Journal, Dec. 2, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.