In other words, a repeal of the estate tax would really only impact those clients with a net worth north of $11 million. That’s why Natanya told me that most of her moderately wealthy clients have already rounded the corner from thinking about taxes to focusing on better estate planning instead. “They are more interested in finding ways to preserve and protect their assets for their beneficiaries than worrying about taxes,” she told me.
This is a key point, because regardless of whether there is a federal estate tax or not, you will always need the basics when it comes to estate planning. That includes establishing financial and medical powers of attorneys to make decisions if you cannot. Eliminating the tax also doesn’t help address who will receive your assets, retirement benefits, or even proceeds from a life insurance policy upon your death. Perhaps more importantly, you may also need to decide the question of guardianship of who will care for your children upon your death – particularly if any of them have special needs.
There is also the issue of timing when your heirs can even access any assets you choose to pass to them. “You never want large sums of money to go into the hands of someone who is newly an adult,”
Source: Do You Still Need An Estate Plan If There Is No Estate Tax?
