I have been relatively aggressive with saving/investing over the last few years and was wondering at what point do you engage someone to help with planning your estate as well as tax advice?

Is there a certain net worth that makes the most sense? Who do you get involved with helping with these decisions?

If you dont have a will currently the answer is you should get on that. Never know what might happen and don't want to leave people depending on you in a bind.

As to when to start specifically planning for the tax considerations it depends on how much money you may be able to accumulate before you kick the bucket. No way this $11,000,000 estate tax exemption holds.

If you're at a point where you have more money to your name already than you plan on spending during your lifetime, you should consider taking advantage of the $15,000 per person per year gift tax exclusion which doesn't count against the lifetime exemption.

In my experience, most people who have an "estate plan" didnt need it. Really, what they needed was just a will to simplify probate.

If you think your estate will be more than $11mil, then I would say start taking steps. If not, I wouldn't worry much about it. However, keep your ears open for tax law changes that would lower that $11mil threshold.

My wife and I have a will in place and it is up to date. Currently we are not in the ballpark of the 11 million dollar estate but potentially could reach that by the time we retire in 20-25+ years. I have used several of the retirement calculators and even with conservative estimates we should do fairly well as long as we keep pace with what we are currently doing. So would it be best to start planning now or wait until we get closer to the above milestone?

Income tax planning should be engaged if you have a crazy compensation package or own your own business(es). I have been told more generally to think about true estate planning / trusts when you near the $5MM mark.

But if you are nearing $5MM, I would also have a good lawyer on speed dial. Someone is going to learn you have money and they will find ways to sue you.

ag0207 said:

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My wife and I have a will in place and it is up to date. Currently we are not in the ballpark of the 11 million dollar estate but potentially could reach that by the time we retire in 20-25+ years. I have used several of the retirement calculators and even with conservative estimates we should do fairly well as long as we keep pace with what we are currently doing. So would it be best to start planning now or wait until we get closer to the above milestone?

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As someone mentioned above, the will (which you have) is important. The estate amount (a little over $11 million for each of you) will likely change so watch out for any change there. Otherwise, I don't know that I would spend a whole lot of time (and money) on planning several years in advance of reaching whatever threshold it is. If you have a $2 million net worth at 30, and take steps now when the threshold is multiples of that, you likely will need to revise the plan, go in different directions, etc. if the $11 million is decreased.

Thanks for the responses. This all may be wishful thinking on my end but I hope to be a multimillionaire one day. If I am able to accumulate that much wealth I would like to be positioned to not have the government take a huge chunk of my estate since they will have taken plenty along the way.

30wedge said:

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ag0207 said:

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My wife and I have a will in place and it is up to date. Currently we are not in the ballpark of the 11 million dollar estate but potentially could reach that by the time we retire in 20-25+ years. I have used several of the retirement calculators and even with conservative estimates we should do fairly well as long as we keep pace with what we are currently doing. So would it be best to start planning now or wait until we get closer to the above milestone?

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As someone mentioned above, the will (which you have) is important. The estate amount (a little over $11 million for each of you) will likely change so watch out for any change there. Otherwise, I don't know that I would spend a whole lot of time (and money) on planning several years in advance of reaching whatever threshold it is. If you have a $2 million net worth at 30, and take steps now when the threshold is multiples of that, you likely will need to revise the plan, go in different directions, etc. if the $11 million is decreased.

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Agree with this.

If you execute a plan too early, you will likely have to revise it at some point when tax laws change.

My thoughts are to do what you need to do, not do what you think you will need in 20+ years. Right now, I would focus on life insurance needs and wait until you have a true estate problem.