Estate planning is the process of creating a plan for the protection of your choices and assets during your lifetime and the distribution of your assets and property after death. With the ever-changing economic and legal landscapes, it is important to stay informed about the latest developments in estate planning. Here are some of the key considerations for estate planning in 2024.
- Guardianship: If you have minor children, its important that you have an updated will that reflects your choices for who you would want to be guardian of them should the worst happen. If you do not express your choice in your will, the court will be forced to decide and it could appoint someone you did not want. Since online wills are easy, affordable and accessible there is no excuse not to take action to protect your children.
- Estate Tax Exemptions: Estate tax exemptions have increased dramatically over the past few years, but they are still subject to change. The federal estate tax exemption is set at $11.7 million per person and $23.4 million per couple. However, it is important to note that many states also have their own estate taxes with much lower exemptions.
- Trusts: Trusts are a popular way to manage and distribute assets, as they offer a level of flexibility and control that is not available with traditional will-based estate planning. In 2024, there are several types of trusts to consider, including revocable living trusts, irrevocable trusts, and special needs trusts.
- Power of Attorney: Designating a power of attorney (POA) is a critical component of estate planning. A POA gives someone the authority to make decisions on your behalf while you are alive and possibly incapacitated. In 2024, it is important to consider using a durable POA, which remains in effect even if you become incapacitated, rather than a springing POA, which only takes effect after you become incapacitated.
- Health Care Power of Attorney: A health care power of attorney is another essential document of estate planning. It allows you to appoint someone to make healthcare decisions for you,and to express your wishes for medical treatment in the event that you become unable to make decisions for yourself. It is important to have a health care power of attorney in place to ensure that your wishes are respected in the event of an emergency.
- Digital Assets: Digital assets, such as online bank accounts, social media profiles, and cryptocurrency, are becoming an increasingly important part of estate planning. In 2024, it is important to consider how these assets will be managed and distributed after death.
- Pets: Americans love their pets and treat them like family but the law doesn’t so you need to make sure your pets are protected as part of your estate plan. You can create a Pet Trust or name someone to receive your pets, when you die. You cannot leave a gift for your pets in your will but you can make a gift of them in your will.
- Digital Vault: Good estate planning in 2024 ensures that all relevant legal and other important documents and information are stored in a safe and accessible location and easily shared with trusted loved ones. Taking this, often forgotten but all important step ensures a smooth transition for your chosen fiduciaries.
In conclusion, estate planning is an important process that helps ensure that your choices and assets are protected during your lifetimes and that your assets and property are distributed according to your wishes after death. With the ever-changing legal and economic landscapes, it is important to stay informed about the latest developments in estate planning. By taking these steps, you can give yourself peace of mind and ensure that you and your loved ones are taken care of in the event of an emergency and after you are gone.
