Last week, we told you about what the Presidential candidates are proposing to do with the estate tax. This week, we want to tell you that regardless of what the estate tax is now or what it will be in the future, there are certain estate planning steps that you should be taking. Specifically, you should talk to an attorney about whether a Revocable Living Trust is right for you.
Many people think that a high estate tax exemption or no estate tax at all makes a Trust useless. Actually, nothing could be further from the truth. If you have enough assets that you are even wondering about how the estate tax might affect your estate, then a Revocable Living Trust can be an excellent estate planning tool.
If you do not have a Trust, it is likely that your estate will have to go through Probate after you pass away. There are other ways to avoid Probate than Trusts, but most people do not take advantage of them. Of course, if you have heard anything at all about Probate, then you have heard to avoid it. This is because it is expensive and time-consuming. A Trust gets around Probate.
That is just one reason to get a Revocable Living Trust regardless of the estate tax. Ask an attorney about the others.