Most estates may fall within the exemption level from federal estate taxes but investors still need to plan for the orderly transfer of wealth.
With the establishment of a historically high $5 million federal estate tax exemption (indexed for inflation), many taxpayers believe they do not have to plan for their estates. But federal estate taxes are only one aspect of estate planning. It’s critical to have the right documents in place and plan for potential state estate taxes
The permanent federal estate-tax exemption levels do not mean that clients with estates of lesser value can avoid planning. Many aspects of estate-planning remain critical to a comprehensive financial plan. Here are five estate-planning strategies to review with clients. 1. Review estate-planning documents Clients with estates of all sizes need to plan for the future.