Why Estate Planning Is Still Important

The increase in the federal estate, gift and generation-skipping transfer tax exemptions, coupled with the uncertain future (and possible complete repeal) of the transfer tax system, have led many people to believe that estate planning is no longer necessary. Even if the federal transfer tax system is eliminated, state transfer taxes may remain (or even increase). Moreover, non-tax personal and business issues are important reasons to have a proper estate plan. Without a carefully considered estate plan, an individual's wealth may not be distributed according to his or her wishes, nor include appropriate trust arrangements. And for owners of closely-held businesses, coordinating business succession planning with personal estate planning will remain critical.