For those who have created living trusts, it is important to keep them updated to ensure that they function as desired and adapt to certain legislative changes.
One such change will occur on January 1, as the federal tax law will go from no estate taxes in 2010 to 55 percent taxes due on all transferred assets after a $1 million exemption, the Richmond Times-Dispatch reports.
As a result of this legislative change, people may want to consider rewriting their wills or living trusts, the news source says, to avoid leaving one’s beneficiaries with an extremely large tax obligation while also ensuring that no person is left out.
While the $1 million may seem like an extreme exemption, many who were able to successfully navigate the recent real estate turbulence may have estates that could be worth much more, the news source said.
For seniors in the Clark County, Washington, area, an information session regarding estate planning will be offered for free on October 12, according to the Columbian. Seniors attending the event will be able to ask questions regarding living trusts and other end-of-life decisions.