Estate Planning Important at All Income Levels

The American Taxpayer Relief Act made the exemption permanent at $5.25 million or $10.5 million for a couple, and it may seem like only the wealthy need to worry about estate planning. The New York Times reminds readers why individuals at all income levels need to have an estate plan in order.

An estate plan can insure that you have up to date beneficiaries listed on beneficiary designation forms. Many people designate a beneficiary when they initiate the forms and then forget about it. Intervening divorces or new additions to family could have an impact that requires a change in the listed beneficiary. 

People with dependent children should make sure that they have an estate plan that ensures they have lifes insurance and guardians for their children.  

Finally, when a person dies without a will, some states step in to sort things out and charge fees to do that, so it is best to have an estate plan in order to avoid such charges or an unwanted disposition of the person’s estate. 

See Paul Sullivan, Estate Planning Remains a Moving Target Under The New Tax Law, The New York Times, Apr. 26, 2013. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.