It shouldn’t come as a shocker to anyone to say that the economy is in the tank right now. Given the situation in which most people find themselves, it may seem like a bad idea to call a Colorado estate planning attorney and begin the process of planning for your passing. A recent article in Investment News, however, calls the current economic climate a “perfect storm” for estate planning, due to politics, the weak economy, and low interest rates.
It may seem awkward, and even backwards logic, to begin estate planning when so many people have so little at the moment, but as the article points out, there are benefits to an economy that is struggling like ours is right now.
These benefits are especially important to the elderly, and include:
- Low asset values
- Low interest rates
- $5 million estate exemptions ($10 million for married couples) for the next two years
- Constantly changing estate planning laws.
The article advises that as complex as estate planning can be, you shouldn’t immediately leap into the heavy stuff without first examining your very basic options. Smaller gift amounts, for example, can be exempt from taxes above and beyond the estate exemptions. There are also popular options out there such as grantor-retained annuity trusts.
Of course, even the basics and the simplest options can be quite confusing to the uninformed, which is why it’s pretty vital that when you begin planning for the future of your heirs, you consult a qualified and reputable estate planning attorney, who can walk you through the maze that faces you and ensure that your descendants get all of the assets you wish to leave, and that said assets aren’t swallowed up by government taxes and fees. Now is a good time to explore options; just make sure you have a strong guide to help you out.