In 2017, the Tax Cuts & Jobs Act of 2018 (TCJA) effectively repealed estate tax by doubling the amount of wealth that could be transferred tax exempt from $5.5 to $11.2 million.

In 2022, lifetime and post-mortem gifts of $12.06 million are exempt from taxation. Allowing joint filers (read: couples) to pass $25 million to their heirs tax-free redefined the rules of estate planning not only for the top one-half of 1% of taxpayers, it also rewrote the rules for how the other 99.5% pass their assets to their spouse, children, grandchildren, charities, and create a lasting legacy.

Beneficiary forms and titling of your assets are crucial estate planning decisions for 99.5% of Americans who do not have taxable estates. This is a financial planning issue not reported on in the major financial media outlets because it’s not breaking news. However, it is strategic planning for a legacy, that could keep your spirit and values alive for generations to come.  

How you title securities accounts held in IRAs, 401(k) and other federally qualified retirement accounts as well as real estate and other assets, is estate planning for 99.5% of Americans.  Estate planning was once only for the richest Americans.  Now, even if you’re not among the top one-half of 1% of American taxpayers, creating a legacy by designating who will inherit your qualified retirement accounts can  change the future for your children, grandchildren, and support charitable causes you care about.

Because of changes in state property laws and the increase in the estate and gift tax exemption, creating a legacy – once the province of legal professionals only -- is a topic to talk with us about.   

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