Sometimes people get ideas in their heads when they hear certain isolated facts and they go forward with an incomplete understanding. This is something that definitely enters the picture where estate planning is concerned.
You may have heard that asset transfers between a husband and wife are not subject to the federal estate tax. This is absolutely true, but it does not mean that you can simply leave everything to your spouse as a way to get around the estate tax.
This may work for a while, but you have to ask yourself what will happen after your spouse passes away. Asset transfers to your children and grandchildren would indeed be subject to the federal estate tax if no steps were taken to gain tax efficiency.
Plus, it may seem like an impossibility to you but what if your spouse remarries? What if he or she begins to have trouble making sound decisions due to the onset of dementia at some point in time?
The intelligent course of action is to steer clear of so-called quick fixes. As soon as you become a responsible adult with people relying on you an estate plan becomes a necessity.
Once you establish a working relationship with a good estate planning attorney he or she will be able to assist you as life changes take place and your estate plan needs to be revised.
There are ways to make sure that your assets are always optimally positioned so that your wealth will be preserved for the next generation. You don’t want to take shortcuts that could lead to devastating consequences when the stakes are so high.
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