NB: Rocket Lawyer Press invited me to contribute another guest post on an estate planning issue. Below is an excerpt of the article I wrote, as well as a link to the full article on the Rocket Lawyer website.
Last December, the wealthiest 2 percent of Americans breathed a collective sigh of relief. The estate tax, which was temporarily repealed in 2010 was scheduled to return on January 1, 2011, and would have subjected estates valued at over $1 million with an estate tax of 55 percent.
But under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 signed by President Obama on December 17, 2010, those with estates valued at less than $5 million can pass their assets to their beneficiaries without any estate tax liability. This means that for more than 99 percent of Americans, estate taxes will not be an issue, at least until December 31, 2012, when the new law is scheduled to expire.
But does the new law make the need for estate planning obsolete? Do Americans with less than $5 million in assets even need a will? Below are some of the reasons why estate planning is important for those without taxable estates.
Continue reading the rest of the post on Rocket Lawyer by clicking here.