People used to plan their estate based on state and federal estate and inheritance tax rates, but changing tax rates have made it difficult to make long-term plans. Federal estate tax rates fell continuously from 2001 to 2010, were eliminated, and then reinstated once again in 2011. Some states have imposed their own estate and inheritance taxes. Also, many people now worry about what will happen to the money that they worked hard for all of their life. One hopes that the future generation will invest their inheritance into items like their education, but worries of the future generation squandering it away are more frequent. John E. Girouard recommends discussing with your advisors methods to prepare heirs to receive and sustain their inheritance.
See John E. Girouard, “Estate Planning Fears That Keeps Us Up At Night,” Forbes (October 29, 2014).
Posted by Aryane Garansi, Associate Editor, Wealth Strategies Journal