2021 is just around the corner, and as you plan your goals and resolutions for the New Year, consider adding “estate planning” to your list.
Why You Should Plan Your Estate Now
Estate planning is something that tends to fall on the backburner. Most of us expect to remain healthy and aren’t thinking about end of life plans. In fact, we find that many of our clients have been putting off estate planning for years, if not decades. The truth is, there’s no better time to plan your estate than now. You never know what’s going to happen, and determining how you’re going to divide your assets and who will raise your children can provide peace of mind.
Estate Taxes in 2021
2021 is the ideal year to plan your estate, as the Federal Estate Tax Exemption is increasing. The exemption for 2021 is $11.7 million per individual or $23.4 million per married couple. This means an individual or couple can leave a maximum of those amounts to their beneficiaries without having to pay any federal estate or gift taxes. That being said, the transition to a new presidential administration could change things – President-elect Joe Biden’s 2020 tax proposals would lower the exemption back down to $3.5 million per individual, which was the rate in 2009. If you have a large number of assets or high net worth, then the sooner you can plan your estate, the better.
Estate Planning Timeframe
Many people put off estate planning because it feels overwhelming, or like it will take up too much time. In reality, it only takes about 3-4 weeks to develop, draft, and execute an estate plan. While every situation is different, and some people may find it takes them longer to make decisions, most people will complete their estate plan within this timeframe. Think about it – your estate plan could be finalized before the first month of 2021 has come to an end!
Begin 2021 with a Plan
Burrows Law Group attorney Adam Hahn understands the importance of estate planning. With years of experience planning estates, Hahn has seen first-hand how having a plan can benefit individuals and their loved ones. “If people knew what kind of mess can arise when there is no estate plan in place, they would be more motivated,” says Hahn. “With the start of the new year, it’s a good time to set goals and focus on things that need to be accomplished.”
Are you ready to plan your estate? Contact Burrows Law Group to speak with an experienced attorney. We would love to help you create the perfect plan – and finally check “estate planning” off your to-do list.