If you’re single and die in 2020, you can have up to $11.58 million in assets before your heirs have to worry about paying a penny in estate taxes.
Knowing that, you might assume only the super wealthy need to worry about estate planning. However, financial planners say you’d be wrong to think planning is only necessary for the 1%.
“Estate taxes are only part of it,” says Jeff Bush, president of Informed Family Financial Services in Norristown, Pennsylvania. “Often, there are income tax ramifications.”
Heirs may be responsible for paying federal income taxes on retirement accounts, and some states have their own estate taxes as well. Plus, “(You) want to make sure (your) stuff goes to the right people,” says Patrick Simasko, elder law attorney and wealth preservation specialist at Simasko Law in Mount Clemens, Michigan.
Meeting with an accountant and an estate attorney is the best way to