Your 3-Step Guide to Creating an Informed Estate Plan
Are you concerned about any of your adult children? Estate planning can pose extra challenges for families with adult children struggling with addiction, marital issues, or irresponsibility with money. The last thing you want is for your wealth to end up having a negative impact on your child, or to see them squander their inheritance. Many parents are concerned about what they can do to shield an adult child who struggles with problems like these from bad decisions and bad people that could worsen their child’s situation.
May is graduation month. This is a time when many of you are celebrating a child’s academic achievements, and even getting ready to send them off to college. During this hectic time do not overlook important estate planning matters. My own daughter is graduating this month from college. Thankfully she took Mom’s advice. With her being away from home, having these documents in place made emergencies easier to handle.
A recent study carried by Ohio University shows that an astonishing 33 percent of all beneficiaries in the US lose their entire inheritance within two years of receiving it. This is either because they don’t know how to properly manage their money, or they misuse their wealth on an unsustainable lifestyle, spelling trouble in future.
So much of our life is spent online. We access our bank accounts, send emails, connect with friends, store family photos, and spend hours on social media. Have you considered what happens to these online accounts when you’re gone? Who will have access to your email? Will your family be able to post on your Facebook page? Will your heirs be able to find the money you’ve worked hard to accumulate? Our increasing dependence on computers causes questions about digital assets to constantly expand.
At the time of this writing President Trump’s proposed tax plan is still uncertain. Along with tax reform, the proposal calls for a complete elimination of the estate tax in 2023 and an increased estate tax exclusion amount beginning January 1, 2018, through 2023. There is also a proposal to eliminate the generation-skipping transfer tax.