2022 brought several changes to estate planning laws. New Jersey residents would learn how these changes affect their final wishes. Losing a loved one is challenging, and the added burden of asset allocation increases anxiety.
Adjustments to gift taxes, estate exemptions, and long-term care affect estate planning. Savvy investing and management make great tools to stay ahead of recent changes. Financial planning is personal to many people, and they want their wishes followed; however, not knowing how the laws affect their plans gets expensive. Litigation and probate costs mount and can erode any substantial inheritance.
Notable 2022 estate planning changes
Long-term care is increasingly expensive, and the costs can absorb thousands of dollars from savings or retirement funds. Medicaid spend-down is a method people use to protect their assets while receiving state help for care.
2022 brought program increases that resulted in higher spend-down requirements. A helpful change for families is the increased estate tax exemptions. This new law protects beneficiaries from paying high estate taxes upon distribution.
Several 2022 changes affect estate planning and distribution. Navigating these changes can be complex and costly. Closely examining the new regulations helps protect assets for your beneficiaries.
Other estate planning changes worth noting
Financial planning laws vary by state, so knowing the laws of your state is crucial. Healthcare funding and government subsidies affect how your assets get distributed. Look closely at how these next changes affect your assets:
- Marriage: State laws vary on the definition of marriage.
- International: Asset distributions vary by country.
- Economy: A poor economy can devalue assets
- Probate Law: Different administrations affect estate distribution.
- Tax law: Increases or decreases in tax laws can affect the estate’s value.
Specific tax laws, economic and societal changes affect the value of assets. A firm grasp of estate planning knowledge will protect your finances and your family.