Estate Planning Basics Attorney in Spring, Texas
What trends do you see in estate planning?
What trends do you see in estate planning?
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00:05
trends in estate planning well i would
00:06
say if if we were talking 20 years ago
00:09
one of the biggest conversations um that
00:12
that i’d have with my clients is
00:14
we talk about how to prepare to pay the
00:17
estate tax
00:19
when one spouse or both spouses pass
00:22
away
00:23
that topic took a long time to discuss
00:26
in the meeting because
00:27
it was some somewhat complex i mean we
00:29
were talking about taxes and we were
00:31
also talking
00:32
about income taxes with respect to
00:34
retirement plans
00:36
and so we took a lot of time in the
00:38
meeting talking about estate taxes
00:40
because the exemption amount for estate
00:42
tax purposes
00:43
20 years ago was less than a million
00:46
dollars and so
00:48
the estate tax really impacted the
00:50
moderately wealthy
00:52
even middle class clients almost
00:54
everybody i met with
00:56
in fact had to worry about the estate
00:58
tax
00:59
so jump forward to 2000 um
01:03
well to now the exemption is 11.7
01:06
million dollars
01:08
and now is 2021. we expect that amount
01:12
to
01:12
drop to 5 million adjusted for inflation
01:17
but people are talking about it dropping
01:19
even below 5 million dollars
01:21
even at a 5 million dollar exemption
01:24
amount for estate taxes
01:26
it still doesn’t impact families
01:29
like it used to the estate tax has less
01:32
of an
01:33
impact for moderately wealthy or middle
01:36
class families and so
01:38
i think the trend is more toward
01:41
focusing
01:42
on the wishes and
01:45
the estate plan without
01:48
a a worry or an estate tax concern
01:52
component in other words we’re able to
01:54
spend more time in the meeting talking
01:56
about
01:57
just a plan that the client wants
01:59
without having to worry about
02:01
complex tax planning i would say that
02:04
that
02:05
represents probably half of the people
02:08
that
02:08
who we serve the other half of the
02:10
people we serve
02:12
we are talking about the estate tax
02:14
we’re looking forward to
02:16
what is the exemption amount going to be
02:18
in the future since the estate tax
02:20
exemption
02:21
is at an all-time zenith at 11.7 million
02:23
dollars
02:24
a lot of clients want to know how do i
02:26
lock that in for now how do i
02:28
make sure that i can transfer 11.7
02:31
million dollars to my family
02:33
tax-free even if i don’t pass away in
02:35
2021 so
02:37
i think it’s kind of two opposite ends
02:39
of the spectrum it’s either
02:41
we’re not talking about the estate tax
02:43
at all and able to focus on the desires
02:45
of the client
02:46
um and and maybe talk about a little bit
02:49
of income tax with respect to
02:51
retirement plans but the other end of
02:53
the spectrum is really focusing on
02:56
how are we going to um how are we going
02:59
to capture that 11.7 million
03:01
exemption and make the most of it
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Spring, TX estate planning & probate attorney Christine Butts talks about the trends she sees in estate planning?
