Many people mistakenly think that having an estate plan is something that only wealthy people need. While that is not the case and anyone of any income level could benefit from having a plan, affluent individuals may have concerns that those of lower income levels do not. In particular, the possibility of reducing estate taxes is something that many parties may want to address when estate planning.
Because the presidential election is just around the corner, many affluent individuals in Arkansas and elsewhere may have concerns about what tax changes could come about, depending on the outcomes of the election. Depending on who wins, there is some concern that the current estate tax exemption of $11.58 million could be cut to $5.49 million. As a result, more estates could face taxes, and many people are considering updating their estate plans to address that possibility.
Many individuals and households are looking to gain information on their options for reducing estate taxes and how they can change their plans to protect their assets. Fortunately, various options exist for doing that. Of course, jumping into any major changes too early is also of concern, so careful assessment and having the right information is vital.
If Arkansas residents have concerns about how possible tax changes could affect their estates, taking their time to consider their options is wise. Looking into possible updates and how certain changes could affect them now and in the future may allow them to better determine whether updating their estate plans could benefit them. Estate taxes can diminish the wealth of a remaining estate, which can mean that beneficiaries receive less, and often, individuals want to avoid that outcome as best as possible.