How Finance Trends Affect Estate Planning

The financial world can feel like it is in constant turmoil, and the current economic trends can leave us wondering how they might affect the stock market and our investment portfolios. However, many people may not realize how these trends can affect their personal estate plans. Here are some trends in estate planning that our estate planning lawyer in Hernando County, FL, wants you to keep in mind:

State Estate Tax Planning – The good news is that many people will no longer need to focus on federal estate tax planning. The bad news? You’ll need to spend more time focusing on updated state estate and inheritance taxes. The state of the estate owner’s primary residence is the one that controls the bulk of this tax. This can become even more complicated if there are properties in several states.

Intergenerational Planning – Providers are learning how to adapt from the old mindset of “preserving wealth with as little government interference as possible” to the new perspective of “capturing, preserving, and managing the assets for the good of a family for generations to come.” This change in thinking means it is critical for the entire family to sit down and speak candidly about their shared vision and goals for the future.

Understanding the Concept & Impact of Double Inheritors – Many in the baby boomer generation will end up being double inheritors. This happens because they are likely to inherit wealth from their parents as well as from their spouses. Estate planners must understand how this double inheritance can affect overall income and adjust their financial plans accordingly.