Nevada residents who have substantial assets may want to think about how to best structure their estate planning to take advantage of gift and estate tax exemptions while making sure they retain enough wealth to care for themselves and their needs through a potentially long lifespan. Those who prepared wills and trusts prior to 2012 should also be aware that due to the American Taxpayer Relief Act of 2012, there have been many changes in tax laws around estate planning.
It is estimated that the federal estate tax exemption, which in 2015 is at $5.43 million per person, might grow to as much as $8 million in the next two decades. However, over that same period, the inflation that causes the estate tax to rise may also cause the value of the estate itself to decrease. As a result, people must consider factors such as their own age and that of their beneficiaries.
Another potential consideration for an individual with a substantial estate is philanthropic giving. A donor-advised fund can pass assets on to charities or foundations and receive a tax deduction for doing so. Philanthropy also gives families the opportunity to unite behind a cause they believe in.
An estate planning attorney may be helpful in working with clients who are starting to think about how their assets should be distributed when they die. Estate plans should be reviewed regularly due to changes in both tax laws and in family circumstances. Families change over time due to marriages, divorces, deaths and births, and it may result in a testator wanting to add or eliminate a beneficiary who was named in an earlier will.