An excerpt from “Estate Planning and The Future of Estate Tax”, an article posted 7/8/2021 by the LSB Trust team.
The purpose of an estate plan is to protect your beneficiaries, provide clear directions for the distribution of assets, honor your legacy wishes, and create a plan for other medical and financial decisions if you become incapacitated or die.
The four main components of an estate plan are:
- A last will and testament
- Healthcare power of attorney and living will
- Financial power of attorney
- Establishing a trust
Who Pays an Estate Tax?
As it stands right now, the lifetime exemption amount for estate taxes is set at $11.7 million per person, which is why about only 0.1% of the U.S. population ends up paying an estate tax. This means that married couples can collectively have over $23 million in assets before an estate tax would take effect. Estate taxes are paid directly from a deceased individual’s estate before assets are distributed. The current estate tax rates are about 40%, which is why it is important to understand who pays and what you currently have for assets.
Read the complete article at mylsb.com/estateplan