Have you given any thought to who will be President when you die? Most of us have not. Many of us have a life expectancy of 20 years (30 years jointly), which is 5 to 7 Presidential terms.
No matter who is in office, tax laws will change; and it’s important that your estate plan has the options and flexibility to change with those laws.
Watch our brief video (2.12 minutes) to learn more.
So who will be president when you die?
That’s a question most of us can’t answer because a lot of us have a life expectancy of 20 years, which is obviously five presidential congressional terms! Some of our clients have a joint life expectancy of 30 years, which is seven and a half terms! And we all know how much can change in just one term.
The other thing we know is that the federal debt is double what it was ten years ago. We know the wealth gap gets bigger each year, and we know that currently the House, the Senate, and the Presidency are all controlled by the Democrats. So, it should be no surprise to us that we’re seeing a plethora of tax law changes being proposed. From income taxes to estate or inheritance taxes, we’re seeing multiple changes being proposed in those areas.
In addition, we’re seeing a lot of changes being proposed to the tools and techniques that we’ve used for decades to help our clients minimize their estate taxes.
So what can you do? The first thing we think you should do is get clarity of your goals and objectives. When you die, there’s only three places your assets can go: to your heirs, to the community, and to the federal government. So you need to decide what percentage of your assets you want to go to each of those three areas.
The second thing you need to do is make sure that your plan has options and flexibility built into it. You need to have the confidence to know that as things change, your plan has the ability to adapt to those changes.
And the third thing you need to do is make sure that you have coordination among your family members and your advisors so that everybody knows exactly what the plan is and how it works in conjunction with other parts of your estate planning.
The idea of having clarity, confidence, and coordination is one that we’ve promoted for years. So, we would suggest that you get with your family and advisors and make sure you have that clarity and confidence and coordination that you need to have a peace of mind. If we can help in any way, we’d be glad to do so.
We know things will change between now and the time that we each die. By having clarity, confidence, and coordination, we hope that you’ll have the peace of mind to help you adapt to those changes as they occur.
C3, Lion Street Financial, and Lion Street Advisors do not provide legal or tax advice. For complete details, consult with your tax advisor and attorney.