Many people believe that because their estates are not subject to death taxes there is no reason to do estate planning. Actually, taxes are just one consideration for estate planning and may not be the most important reason. Whereas, family protection is the primary consideration in meeting most estate planning objectives.
Some other reasons include: protecting a spouse, ensuring that minor children are protected, remarriage protection, planning for the succession of business ownership, Medicaid planning, paying for nursing home care, avoiding probate, creditor and asset protection, lifetime protection planning, providing for gifts to charities and non-family members; and the reasons go on and on.
Oh, yes, there is also the tax reason for planning. Right now there is no federal estate tax but in 2011 it will be reinstituted. It may be reinstituted in 2010. There is also the other tax. Indiana has an inheritance tax and it can be substantial if proper planning is not done.
So you see, there are reasons for estate planning other than just taxes. Everyone should have his/her personal situation evaluated to determine what appropriate life time and estate plan best meets the person’s needs.
Author: John Stuff Staser (bio)
Phone: 812.452-3549
email: sstaser@bamberger.com
Tags: estate plans, John Stuff Staser, protecting assets, taxes