Estate and Personal
Financial Planning

Estate Tax Planning

Most of us fall below the Federal Estate Tax exemption threshold of $11.7M for an individual and $23.4M for a married couple (2021 exemption). Still, this threshold is not immutable, nor is it the only consideration. The “correct” exemption is very much under debate in the current Congress, as well as whether to surcharge the gain on capital at death in addition to taxing the transfer.

Kentucky does not have an estate tax at the state level, but it does have an inheritance tax.  The size of the inheritance and the beneficiary’s relationship to the grantor determines the rate at which the beneficiary is taxed. The relationship test fully exempts the close family members, but other beneficiaries may be responsible for a tax of up to 16% of their inheritance.

 

For these reasons, considering the tax consequences of asset transfers at death is important for anyone, even those of moderate means.

Personal Financial Plan

While I no longer actively manage clients' assets as an investment advisor, I have maintained my certified financial planner credential. I take my duty seriously to counsel clients financially as part of their estate plan development. In addition to highlighting key issues to the client that come to light through review of their estate plan, for a modest fee, I will complete a full financial plan review addressing issues such as debt management, college savings, or retirement savings that are outside of the estate plan engagement.

CFP and CERTIFIED FINANCIAL PLANNER are certification marks owned by CERTIFIED FINANCIAL PLANNER Board of Standards Inc. (CFP Board), which can help you identify financial planners who are committed to competent and ethical behavior when providing financial services. Individuals certified by the CFP Board have taken the extra step to demonstrate their professionalism by voluntarily submitting to the rigorous CFP certification process that includes demanding education, examination, experience, and ethical requirements. These standards are called the four Es, and they are four important reasons why the financial services practitioner you select should display the CFP certification marks.