The Real Future of the Estate Tax?
What is the future of one of the most controversial taxes? Consider a few things:
- Our government is running record deficits.
- Over the next 50 years we will see largest transfer of wealth in our planet’s history.
- Over the next 50 years we will see our senior population grow exponentially.
- State budgets are stretched to the breaking point with the loss of estate tax revenues.
- History tells us that our government turns to estate tax to solve fiscal challenges.
- America’s current foreign policy, whether or not you agree with it, is expensive.
- The Democratic Party controls Congress for the foreseeable future.
- Pundits place a Democratic President in our future.
- Influential business leaders like Warren Buffet argue against repealing the Estate Tax.
So, what do you think? Whether we like the Estate Tax or not is irrelevant. The right question to ask ourselves is whether it will be a reality in our future. In light our country’s current situation, and the lessons of history, I believe it will be. The best we can do is to plan accordingly.
It is important to remember that any Estate Tax is only a small component of the reason we should plan our estates. The transfer or our financial and spiritual wealth to whom we want, when we want and in the manner that is in the best interest of our heirs is the real meaning of Estate Planning. Yes, it is nice to reduce Uncle Sam’s cut, but that should not be the sole motivation to plan for our family’s protection.
One last thing to remember is that Estate Tax, no matter the exemption, is VOLUNTARY! With proper planning, the estate tax can be avoided altogether. Remember that when you consider consulting your Personal Family Lawyer™!