Even if Washington raises the estate tax exemption to $10 Million you should still have a trust, especially if you are a home owner. Why? The short answer is time, money and saving a lot of hassle for your loved ones, heirs and beneficiaries.
Raising the exemption on federal estate tax to $10 Million would seem to mean most San Diegans do not have to worry about estate planning. Nothing could be farther from the truth. If you place all of your intentions in a will, your heirs will be forced to take all of your assets and private family business through probate court. This means all of your personal financial and family information will be in the public domain. It also means your family will have to pay expensive probate fees on the appraised value of your assets.
If you are a homeowner and your home would appraise for $500,000 the probate costs are based upon this value, regardless of the amount of your mortgage. Probate fees on a $500,000 will easily exceed $25,000 alone. Worse, the process to take an estate through probate and clear an asset such as a house through the court will almost always take more than a year. Your heirs and beneficiaries must go through the complicated probate process, and wait an extensive period of time to receive the inheritance you have intended and access to assets such as a home or vehicles.
The estate planning and tax attorneys at Allen Barron help you to create an effective estate plan including a revocable trust, business succession plan, medical directives and other crucial documents. We ensure that your wishes are memorialized and your directions are followed. Our estate plan will minimize any tax impact to your beneficiaries while saving them and your estate tens of thousands of dollars, a year or more of their time and a substantial amount of hassle.
Even if Washington raises the estate tax exemption to $10 million you should still have a trust and estate plan. If you have an existing estate plan or trust it should be reviewed every two to three years. Things change, laws change, family dynamics change. We invite you to contact us or call 866-631-3470 for a free consultation. Learn how we can provide you with peace of mind and a cost-effective estate plan which will save your heirs and beneficiaries a significant amount of time, money and hassle.