Be Ready to Adjust Your Retirement/Estate Plan

There are certain business relationships that you need to maintain for the long haul. If you are serious about your financial future a relationship with a good Central New Jersey attorney who specializes in retirement and estate planning is a must.

It is not simply a matter of devising an initial plan in a single day. There are things that may take place over the years that could render your existing plan obsolete. You have to be ready to make adjustments to be certain that you are optimally positioned at all times.

A single mistake can wind up having devastating consequences for your family members. For an example look no further than the coming changes to the federal estate tax parameters.

Right now the amount that you can pass on to your heirs before the estate tax kicks in is $5.12 million. However, next year this amount goes down to just $1 million.

If your estate plan was originally constructed with the understanding that your resources do not exceed the estate tax exclusion there would be no reason to employ tax efficiency strategies. But if you were suddenly to enter taxable territory your legacy would be exposed to some significant asset erosion.

And outside of changes to the tax code your own financial situation could improve significantly and this could create estate tax exposure. Plus, here in New Jersey there is an estate tax on the state level and the exemption is just $675,000 as of this writing.

You also may want to alter your overall long-term financial plan as market conditions fluctuate and your financial situation evolves.

The suggestion here is to develop a good working relationship with an estate planning attorney to put an initial plan in place. You should then be prepared to work with your lawyer to make adjustments along the way in response to ever-changing circumstances.

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Alan Augulis, Estate Planning Attorney

Mr. Augulis founded his Warren, New Jersey law firm so that he could focus his practice in the areas of advanced estate planning and tax law. Mr. Augulis has invested considerable time and energy helping to educate others on the topic of estate planning and has become a sought-after speaker in the tax and estate planning arena because of his informative and entertaining seminars.

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