{"id":12387,"date":"2022-01-17T09:48:58","date_gmt":"2022-01-17T15:48:58","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=12387"},"modified":"2022-01-17T09:48:59","modified_gmt":"2022-01-17T15:48:59","slug":"iowa-fiduciary-services-part-4-estate-planning","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/iowa-fiduciary-services-part-4-estate-planning","title":{"rendered":"Iowa Fiduciary Services Part 4: Estate Planning"},"content":{"rendered":"\n
The COVID-19 Pandemic has changed the nation\u2019s perspective on many things, and estate planning is definitely one of them. Here’s why planning for the unexpected has never been more important.<\/strong><\/p>\n\n\n\n Chances are you\u2019ve spent plenty of time pondering how much money you\u2019ll have available at retirement. But what have you done to plan for your estate? The sad truth is that most of us \u2014 some 70% of adult Americans \u2014 have neglected to write a will. However, COVID-19 has significantly increased the demand for estate planning. Caring.com\u2019s 2021 Wills and Estate Planning Study<\/a> found that middle- and older- aged adults are less likely to have a will now than they were just one year ago, while younger adults are 63% more likely to have one this year than they were pre-pandemic.<\/p>\n\n\n\n Shockingly, 18-34 year-olds are now 16% more likely<\/a> to have a will than those in the 35-54 age group. The younger generation was also the most likely to cite COVID-19 as the reason they started taking estate planning seriously. While Estate Planning<\/a> is something we know we should do, we somehow manage to postpone until later in the future. The more we postpone planning, the more we could potentially pass over an important opportunity to protect the lifestyle you’ve worked hard to create.<\/p>\n\n\n\n Many people might feel they can wait until they become seriously ill, old or infirm to decide on how to divide their assets, set up a trust or legally decide whom to leave the house to. It\u2019s better to plan ahead and utilize an Iowa Fiduciary to help you plan for any scenario with estate planning. Here\u2019s what you need to know and how to create an estate plan in the state of Iowa.<\/p>\n\n\n\n Many people believe that if they have a will, their estate planning is complete, but there is much more to a solid estate plan. A plan that is tailored to your family\u2019s specific needs – with clear instructions and limited uncertainty – is the best way to make sure that your assets, savings, jewelry, car and home are distributed to the people you want to receive these items. <\/p>\n\n\n\n A good plan should be designed to avoid probate, save on estate taxes, protect assets if you need to move into a nursing home, and appoint someone to act for you if you become disabled. A lot of times people assume they can simply download a document online, when in reality, it’s more complex than meets the eye.<\/p>\n\n\n\n To help avoid family confusion, stress and conflict after your passing, first begin by gathering the following documents for your Fiduciary:<\/p>\n\n\n\n Armed with this base information, we\/your chosen Fiduciary can get a better understanding of your financial picture and create a custom estate plan to address your specific needs.<\/p>\n\n\n\n A big part of maximizing what you leave behind is minimizing taxes. Federal taxes on gifts and estates can be among the highest assessed on any financial transaction. In addition, some states levy their own estate or inheritance taxes.<\/p>\n\n\n\n Both estate and gift taxes usually have exemption limits, meaning you can give up to a certain amount without incurring tax. Many people use the gift tax exemption to transfer assets while they are still living, as part of their strategy to maximize what their beneficiaries receive. Depending on your unique situation, the IRS has many useful resources to help you navigate your estate planning journey: <\/p>\n\n\n\n COVID-19 Relief for Estate and Gift<\/strong><\/a> Frequently Asked Questions on Estate Taxes<\/strong><\/a> Gift Tax<\/strong><\/a> Frequently Asked Questions on Gift Taxes<\/strong><\/a> Filing Estate and Gift Tax Returns<\/strong><\/a> What’s New – Estate and Gift Tax<\/strong><\/a> Deceased Taxpayers – Probate, Filing Estate and Individual Returns, Paying Taxes Due<\/strong><\/a> Many people think that they don\u2019t need a will since they don\u2019t have an \u2018estate’, but wills and trusts are not only for the rich. If you\u2019ve got a family and a home \u2014 not to mention a savings account \u2014 you should definitely have one. They are safeguards for anyone who wants to ensure their loved ones are cared for should the unexpected happen.<\/p>\n\n\n\n There are many good reasons to have an estate plan if you don’t necessarily deem yourself “wealthy”:<\/p>\n\n\n\n So no, you don’t have to be rich to need an estate plan. The goal of an estate plan is to provide security for you and your family. When you think of it that way, wealth has nothing to do with it at all.<\/p>\n\n\n\n Although estate planning can be a complex task, a well-informed plan can make a big difference in what is left for your loved ones. Be clear about who would be making decisions on your behalf. Introduce your designated power of attorney for property to your professional advisors such as your trusted Iowa Fiduciary<\/a>. Discuss your wishes with everyone present and ensure all conversations are properly documented so that your attorney and Fiduciary will all be on the same page should the time come when you are unable to manage your affairs on your own.<\/p>\n\n\n\nWhat Makes A Good Estate Plan?<\/strong><\/h4>\n\n\n\n
Estate, Inheritance, and Gift Taxes<\/h4>\n\n\n\n
Learn about the COVID-19 relief provisions for Estate & Gift.<\/p>\n\n\n\n
Find some of the more common questions dealing with basic estate tax issues.<\/p>\n\n\n\n
If you give someone money or property during your life, you may be subject to federal gift tax.<\/p>\n\n\n\n
Find some of the more common questions dealing with gift tax issues as well as some examples of how different types of gifts are treated.<\/p>\n\n\n\n
Learn when to file estate and gift taxes, where to send your returns, and get contact information if you need help.<\/p>\n\n\n\n
Stay up to date with the tax law changes related to estate and gift taxes.<\/p>\n\n\n\n
Information to help you resolve the final tax issues of a deceased taxpayer and their estate.<\/p>\n\n\n\nYou Do Not Need To Be Rich To Need A Will<\/strong><\/h4>\n\n\n\n
Understanding Your Options<\/strong><\/h4>\n\n\n\n