Financial planning attorneys will advise you to remain apprised of your net worth at all times. There are a number of different reasons for this, and one of them is the fact that you need to know exactly where you are in the present to determine if you are on the proper course for retirement.
If you develop a net worth statement you will be able to use this as a guidepost regarding your long-term financial trajectory.
Another reason why it is a good idea to know exactly what you have is the fact that the estate tax may or may not be a very big factor when you are planning your estate. Here in Connecticut we have a state estate tax, and there is also the federal estate tax to contend with.
Whether or not you are exposed will be determined by your net worth as it compares to the estate tax exclusion that is in place at the time of your death. This exclusion is not something that always stays the same. As a result you must consult with your estate planning attorney often to make sure that your current plan is up to date given the existing state of affairs with regard to the tax laws.
If you were to go forward without taking any steps to gain estate tax efficiency because you were not aware of the fact that your resources were indeed in excess of the exclusion amount your loved ones could wind up paying a very significant price.
Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
- What Is HIPAA and Why Should I Care? - June 6, 2023
- These Tips Can Jumpstart Your Estate Plan - May 23, 2023
- Generation Y Members Need Estate Plans - May 11, 2023
