The estate planning laws may change in the next few years. Right now, the federal estate tax exemption is $13.61M. So a couple could have up to a combined $27.2M before having to worry about estate taxes.
As a result, many people have foregone the strategy of using trusts, especially in states with no estate taxes. While some funds will still have to go through probate, the actual process of probate may not be that bad for many people.
Of course, this could all change if the estate tax exemptions are changed in the next few years. One question that came up in discussion is what happens to Tenant In Common accounts when one spouse dies. Is the other spouse locked out of that account for the duration of the probate process? Can they not even change asset investments? Or can they just not withdrawal anything? Or, can they withdrawal up to 50% of the account, ie. their TIC ownership?
I'd also be interested to hear if many folks ditched their trusts in the last few years.
As a result, many people have foregone the strategy of using trusts, especially in states with no estate taxes. While some funds will still have to go through probate, the actual process of probate may not be that bad for many people.
Of course, this could all change if the estate tax exemptions are changed in the next few years. One question that came up in discussion is what happens to Tenant In Common accounts when one spouse dies. Is the other spouse locked out of that account for the duration of the probate process? Can they not even change asset investments? Or can they just not withdrawal anything? Or, can they withdrawal up to 50% of the account, ie. their TIC ownership?
I'd also be interested to hear if many folks ditched their trusts in the last few years.