More Changes On The Estate Planning Front

A jar of coins with the word retirement written on it.


The I.R.S. is giving widows and widowers more time to deal with complicated estates after one spouse dies.  Typically, when one spouse dies, the other one gets all or part of the estate tax-free.  The surviving spouse can also carry over the deceased’s unused estate tax exclusion if they file an estate tax return and choose what the IRS terms “portability.â€Â  Previously, a surviving spouse had only 15 months to file the return.  Under new rules, however, the window for filing was extended to two years in 2017 and then last week it was raised again to five years.  Talk to your tax accountant if you have any questions about the new rule.

Give The Gift Of A College Education To Your Grandchildren, And Do It Tax Free


When doing your estate planning, if you plan to include your grandchildren in your estate, consider giving them some of the money sooner rather than later so that they can get a good college education.  In 2021, you can give up to $15K ($30K with a spouse) to anyone, with no limit on the number of recipients or tax consequences, for either you or the person receiving the gift.  You can consolidate five years of giving into a $75K gift payable over five years, according to the IRS.  If the tuition is paid directly to the school, you can give an unlimited amount tax-free without having to file a gift tax return.  The funds can be used for tuition only, not books, supplies or room and board (Kiplinger’s Retirement Report, August 2021, P11).

Carmel, CA Estate Planning In A Coronavirus World : By Derek Baine

A jar of coins with the word retirement written on it.


AARP Bulletin in their November 2020 issue (page 22) had an interesting article about more and more couples looking at estate planning now that the coronavirus is making the future outlook uncertain.  Keep in mind that you can write a will at any time, even if you are sick in the hospital.  Most estate planners recommend setting up a living trust, which gives you a lot of flexibility on how your assets are distributed following your death.  Experts warn that doing a joint will for a couple is a terrible idea—they aren’t even legal in some states.  Leaving more to one child than another almost guarantees that the will could be challenged.  Stepchildren aren’t automatically treated as children for legal purposes.  There are a lot of moving pieces in an estate plan so consult with your attorney.

Pebble Beach, CA Estate Planning In A Coronavirus World : By Derek Baine


AARP Bulletin in their November 2020 issue (page 22) had an interesting article about more and more couples looking at estate planning now that the coronavirus is making the future outlook bleak.  Keep in mind that you can write a will at any time, even if you are sick in the hospital.  Most estate planners recommend setting up a living trust, which gives you a lot of flexibility on how your assets are distributed following your death.  Experts warn that doing a joint will for a couple is a terrible idea—they aren’t even legal in some states.  Leaving more to one child than another almost guarantees that the will could be challenged.  Stepchildren aren’t automatically treated as children for legal purposes.  There are a lot of moving pieces in an estate plan so consult with your attorney.