How to Know If You Need an Estate Plan
Estate planning is an often-neglected part of financial planning for the future. Changes to the federal tax code in 2017 may have some impact on your decision as to whether to set up an estate. Working with an estate planning lawyer in Las Vegas can help you look at the details of your situation and determine if an estate plan would be in your best fiduciary interests.
Your Family Status Has Changed
Estate planning depends on your family status. Perhaps you have a will, but you have had children since then. Grandchildren may also have come into your life. With an estate, you can set up a guardianship over any funds or assets that you leave to a child under the age of 18. The guardian acts as a custodian of the funds.
Under current federal law as of 2019, an individual can leave an estate of up to $11.2 million without any estate taxes. In a married couple, if one person dies, the survivor can have an estate worth $22.4 million without any taxes. It’s also important to plan in case of simultaneous deaths, such as a car accident. You may want your estate plan to include contingencies for this type of event.
You Want to Stretch Asset Distributions
Perhaps you are 80 years old, and your child is 45. You may want to have your child as the beneficiary of your Roth IRA. You may set up your child as the beneficiary of the Roth IRA funds. The disbursements can be stretched according to the stipulations in your estate. The IRS might calculate that your child has another 41 years of life expectancy if you die tomorrow. Your child could start getting distributions this year.