Market Memo – Planning Article

March 2023 – By Tom Rueger, J.D., CFP^®

What is a Will and what does it do? A Will is a legally binding written document that sets out specific desires regarding the distribution of property and the care of minor children. It allows a person to be very specific about who gets (or doesn’t get) which asset(s) and how much of it they get. Assets or minor children can be kept out of the hands of people that you do not want to have them. You can also appoint someone you trust to oversee the process of distributing your assets.

February 2023 – By Tom Rueger, J.D., CFP^®

Fred and Wilma have done well during their lifetime and accumulated a significant net worth. Now they are looking into their options for estate planning. The 2017 Tax Cuts and Jobs Act increased the federal lifetime gift and estate tax exemption to $12.92M/$25.84M for 2023, but it is set to expire on 1/1/2026 (and revert back to the prior amount of $5M, adjusted for inflation). Fred and Wilma are concerned that their estate will be liable for significant taxes if the exemption returns to its prior amount in a few years. They want to remove assets from their estate without making current gifts to their children as they are concerned it might affect their future standard of living. A SLAT could be the solution.