Why Middle Class Families Need an Estate Plan
There are a lot of average Americans out there who do not think they need an estate plan
because they don’t believe they have enough money for it to matter. The reality is that
estate planning is a vital step for any family to make, even if you do not count yourselves
amongst the ranks of the wealthy. Here are three reasons why.
Estate taxes could get lower.
The current estate tax exemption is just over $5 million. This means that you don’t have
to worry about paying estate taxes unless you have assets of $5 million or more.
However, that tax exemption limit is set to expire in 2013, dropping to $1 million unless
Congress agrees on a new limit. This means that estate taxes could affect a lot more
people than they have recently.
Your children need a guardian.
As a parent, the only way you can select who will become your child’s caregiver should
you die is by creating an estate plan in which you name a guardian. If you don’t have a
plan you leave it up to the court to make this decision, and the judge could easily select
someone of whom you do not approve.
You have specific wishes about medical choices.
An estate plan should also contain medical directives that address what might happen
should you become involved in an accident or suddenly incapacitated. These directives
can include a living will, powers of attorney, healthcare proxies, or other related
documents allowed for by your state.
Experienced estate planning attorneys Greensboro NC of the Law Offices of Cheryl
David offers estate planning and business planning resources to residents of Greensboro
NC. To learn more about these free resources, please visit http://www.cheryldavid.com