Episode 90: 3 Reasons to Review Your Tax and Estate Plan Now

Today’s Prep:

Regardless of your age, here are three reasons you may want to review your tax plans and estate plans before the end of the year. Do you have everything set up in the most beneficial way?

(Click the featured times below to jump forward in the episode)

Equipping Points:

Why should you review your tax and estate plans right now? On today’s episode of the podcast we talk about plans and upcoming potential changes that impact everyone. Have you reviewed your tax plans recently? Is your estate plan properly prepared? 

One reason to look at your tax plan in 2020 is because it is an election year. Depending on who gets elected, your tax rate may get raised. Another potential change depending on which political party is in power, is the gift tax exemption. If the Democrats get elected, they have talked about eliminating the stepped up cost basis at death. What does this mean? How does it impact you?       

Have you considered doing a Roth conversion? If tax rates are likely to be higher in the future, there’s a good reason for you to do a Roth conversion. Now consider for a moment what would happen if you got laid off or furloughed. When have a temporary reduction in earnings, it may be a good opportunity to do some Roth conversions. Also, it’s important to note that a Roth conversion is for anybody, regardless of age or income level.

With the addition of the SECURE Act this year, the previous benefits of the inherited IRA were eliminated for most beneficiaries. Do you have a trust set up that will cause issues for your beneficiaries? Once you are gone, there are a lot of things that can’t change, including the beneficiaries listed. Spending time right now to make sure everything is still on track may make all the difference later on.

There’s no time like the present–do you have all of your tax and estate plans in order?

Listen to the entire episode or click on the timestamps below to hear a specific segment.

[0:34] – This show has something for everyone when it comes to tax strategy.

[1:31] – Why should you review your tax and estate plan right now?

[3:21] – What is the gift tax exemption?

[5:17] What happens if the stepped up cost basis at death changes?

[7:31] – Have you looked at doing a Roth conversion?

[11:04] – How has the SECURE Act changed your estate plans?

Today’s Takeaway:

Roth conversions don’t care whether you are 26 years old or 86 years old. You can do it. They don’t care whether you make $10K a year or $10M a year. Anybody can do a Roth conversion, not anybody can do a Roth contribution.

– David Dickens

Additional Resources:

PODCAST: Which Presidential Outcome Will Be Best for Your Portfolio?

PODCAST: What is the Strategy Behind a Roth Conversion?


More From David:

The host: David Dickens

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