Some insight seems to suggest that high net worth baby boomers should think carefully about gifting their estates in 2020. The largest generational wealth transfer in history is on the horizon for the United States. It’s expected that today’s millennials will inherit upwards of $30 trillion in property form baby boomers and, of course, it is unknown how the pandemic will yet influence this trend.
But plenty of Americans have stepped forward to think about the legacy that they’ll leave behind. Possible changes to estate tax legislation are leading many baby boomers to wonder whether or not it is best to gift portions of their estates. Certain kinds of trusts can allow people to avoid estate taxes, for example, particularly when you are a married couple and are interested in using an exemption.
The estate tax exemption number kept rising over the rising and today estates up to $11.58 million per person are exempt from estate tax. This exemption, however, is expected to end in 2026 unless the exemption amount is reaffirmed by Congress.
Given that so much is up in the air, it makes sense to schedule a consultation with a trusted estate planning lawyer to determine how you can prepare for the possible changes coming down the pike as it relates to estate planning. If you’re nearing retirement age and are worried about qualifying for Medicaid, that, too, should inform your decision about how much of your estate you want to give away. You can discuss the specifics of Medicaid lookback periods with your estate planning lawyer.
You deserve to have all of the information and be able to make informed decisions about your future, and a relationship with a Pasadena estate planning lawyer can often be the first step in helping you feel more confident about this.