Florida residents who have large estates are likely aware that over the last decade, there have been changes to federal estate tax exemptions and capital gains rates that may change how they want to approach their estate planning. Capital gains tax rates have gone up from 15 percent to 24 percent, while the federal estate tax exemption rose from $1.5 million to $5.43 million between 2004 and 2015.
While most people think about wills or trusts when planning their estates, it is important for them to also plan for the possibility that they may suffer an illness or injury that will leave them unable to make decisions while they are still living. There are several different ways people can plan for incapacity so that someone else can take care of certain matters on their behalf.
Experts caution that Florida baby boomers must not neglect estate planning as part of their retirement planning. However, people of this age group are not the only ones who tend to avoid these matters. While planning for what happens to one's assets after one's death may not be a pleasant topic, doing so is important for loved ones.
Individuals in Florida who are estate planning should keep in mind that how they prepare their loved ones is as important as how they prepare the documents related to their estate. Family members may be unwilling to discuss estate plans, bad at organization or uninformed about finances. All of these qualities may contribute to difficulty in carrying out an individual's wishes, even when the will and other documents are correctly prepared.
When an individual or a group of individuals are granted power of attorney, they are given the authority to manage an individual's affairs. In some cases, the power is limited to a certain action or set of actions. For instance, another person may be granted the ability to oversee the closing of a real estate transaction. In other cases, a broad authority may be granted to manage an individual's affairs.
Taking the time to think about estate planning issues now may make it easier to create a plan that meets an individual's needs. When coming up with such a plan, it is important to consider how estate and gift taxes may influence an estate's assets.
Florida residents may know that setting aside time to structure a viable estate plan allows an individual to provide security for his or her loved ones. It's important to plan for others to handle one's affairs in the event that one is incapacitated or dies.
After the whirlwind of marriage is over and the dust is settled, most newlyweds in Florida turn their attention to planning for their future. While this often involves financial planning geared towards savings, purchasing a home, career advancement and children, estate planning is also an important component that should be addressed.
Writing a will can bring people in Florida peace of mind that their wishes will be known after they pass away. Creating a will is an important part of estate planning, but there are some life changes that make reevaluating and modifying one's plan a prudent course of action.
Many Florida residents find it difficult to contemplate end of life decisions, but addressing these issues can provide you with peace of mind while protecting your estate and safeguarding your legacy. Failing to have an effective estate plan in place could leave your assets vulnerable and increase your tax exposure, and it may also lead to conflict among your heirs.