Estate Planning is really about the family and not about taxes.
When I have asked my clients what their primary concerns are, their first answer is they want to protect themselves in the event of physical and mental disability and protect the surviving spouse in the event of physical or mental disability and in the event of remarriage. Next they want to protect their loved ones, most of the time their children (sometimes a charity). They want to protect their children so that the children do not lose the inheritance in a divorce, a car wreck lawsuit or squander it. They also do not want to “set up a fight” between their children over their estate.
The third priority my clients tell me about is avoiding Probate Court costs and taxes. The concern here in North Carolina is that the Court costs (a combination of administration fees and state tax) can be up to $6,000 per person or $12,000 per couple. This can be much more expensive than setting up and maintaining a proper Estate Plan.
Although they are wrestling over taxes in Washington, D.C. with the Congressional Republicans seeking to keep taxes from being raised and the White House seeking to raise taxes. However, that may not personally affect your Estate Plan. What may personally affect your Estate Plan is if you become mentally disability and there is not proper Estate Planning in place for that situation. It is much more personal if the surviving spouse remarries after the first spouse passes and your entire Estate leaves the family moving away from your children and going to the replacement spouse. It is much more personal if your children get into a fight over your Estate and create animosity that lasts their life time. It is personal if your children squander their inheritance or lose it in a divorce or lawsuit.
One never wants to pay Probate Cost as there is rarely a good idea to donate money unnecessarily to the State. It is better to leave it to your loved ones or to a charity.
The first priority for most of my clients is to protect themselves and their spouse. Second priority is protect their children. Third priority is to avoid Probate Cost and taxes, including Estate and Capital Gains.
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.