Here are some pertinent developments and relevant factors in estate planning in the year 2024.
The federal gift and estate tax exemption has gone up in 2024 because of inflation. There are estate and gift taxes developed of about $13 million per person. This enables people to transfer great portions of wealth without having to pay taxes at the federal level. Under different circumstances, this exemption drops back to around $5 million in the adjustment ever by 2026. It would be great to have such people who are strategic regarding assets.
Several states have made changes to some of the trust laws that allow people to form and run the trust more efficiently. Usually, in these cases, the guarantees of further protection of the funds, more confidentiality, and faster processes in the management of the trust are offered. For example, it is now allowed in some states for trustees to “decant” assets from one trust to another in order to meet changing beneficiary needs and or circumstances of the various trusts.
With the advancement of the internet and technology, cryptocurrency has become a digital asset with mass adoption. Estate planning today more often than not has provisions regarding cryptocurrencies and other digital assets. Such provisions must include instructions on how to access these assets and how to use them. Several states are also pondering about or have enacted legislation that provides clarity regarding the status of digital assets in estate planning.
Covid-19 made it very apparent how healthcare planning should be done. Many individuals now see the relevance of having advanced healthcare determinants in the medical procedures that should be performed on them in case they become incapacitated. Right now, there is an emphasis on communication for family members that there will be healthcare declines and authorities that will be taking care of these people.
As a consequence of the SECURE Act, which was legislated in the last few months of 2019, individuals who inherit retirement accounts will be subject to new distribution regulations. Non-spousal beneficiaries must deplete their entire account in a ten-year period, and this could be a concern. Beneficiary designations must also be reviewed and updated from time to time in compliance with the changes and the goals and objectives of the estate plan.
The law regarding Estate Planning varies from one state to another. Of late, a few of the states have enacted laws that are geared towards decreasing the burden of the probate process or increasing the asset-safeguarding mechanism of some of the trusts. Therefore, it is very critical for people not to be oblivious to such country-level statutes while coming up with estate planning policies.
A person practices estate planning to make sure their digital property, taxes, or even medical wishes are not against legal mandates and create security for the person’s heritage.
One of the most crucial aspects of estate planning management is keeping up with new information on strategies and technologies used in that field.
Estate Planning Expert
We've got more insights for you
