After the recent presidential election, individuals are considering their existing estate plans and what changes may be necessary. Incoming administrations often lead to changes in interest rates, tax laws and other factors that should be considered when estate planning. Appropriate and timely changes now can help a Louisiana family avoid complications and financial loss in the future.
Protection of wealth is an essential component for high-income individuals with large estates. It remains to be seen how the incoming Biden administration and the possibility of a split government could impact the estate tax exemption amount. For some, a practical way to set aside and protect assets in case of several contingencies is to create a trust. There are various different types of trusts that may prove useful for specific situations.
It is likely that interest rates will continue to be low. This could affect certain types of estate planning decisions, particularly regarding the ability to freeze assets in certain categories of trusts. Additionally, individuals who live in high-tax states may want to consider moving or establishing their domicile in a lower-tax state. This is a possibility for more people than ever before because of the large transition to remote work that has happened in 2020.
It’s impossible to know the future, but it is possible to make smart decisions regarding protection of wealth and long-term financial stability. It is helpful to discuss these matters and potential changes with an experienced Louisiana estate planning attorney. An assessment of the individual case can allow one to understand how this election could prompt the need for changes and updates to existing plans.