MONTHLY LAW TIPS - June 2023
A couple things you should think about are:
- Beneficiary Designations. Individuals usually get caught up with wills and trusts when they think about estate planning. The forgotten step and the most critical step in my point of view is beneficiary designations. The older you are, the more critical it is to make sure that your beneficiaries are accurately stated. First of all, generally more money is moved into assets with beneficiary designations as you age. Second, life happens - children are born, people die, and you just place different values on your loved ones over the course of time. Make sure your beneficiary designations are accurate and consistent with your values.
- Annual tax-free gift. Most people are short-term when it comes to taxes. They look at current income tax. One tax that many forget is the estate tax. If you are in comfortable position financially and are looking to move assets to your children efficiently, then make it a habit to leverage the annual gift tax exclusion.