Are your estate documents up to
date?
September 2004
When was the last time you reviewed your
will, medical directives, and other estate planning documents? If it’s
been a while, chances are something needs updating.
The amount exempt from estate tax increased
this year to $1.5 million, and the top estate tax rate dropped to 48%.
Your will, trusts, and other estate
documents should be worded to take the ongoing changes in the exemption
amount and the tax rates into account. Pay special attention to formula
clauses relating to the exemption amount. Wording that accomplished your
objectives when the documents were written might divide your estate
contrary to your wishes under today’s rules.
There is one particular estate tax strategy
that everyone should know about. Keep your life insurance proceeds from
being taxed in your estate by having a trust or someone other than
yourself own the policy.
Estate planning is as important as income
tax planning. For assistance with your planning, contact us today.
Return to 2004 Tax Tips
