As we look ahead to 2021 what do we need to know regarding estate planning? Depending on the outcome of the election, certain tax laws may change, which means how you plan for your estate could also change. Right now, the federal estate, gift and generation-skipping transfer tax exemptions are $11,580,000 for individuals and $23,160,000 for married couples with a tax rate of 40%.  These exemptions are slated to increase in 2025. However, the tax rate could increase to 55% and a lower exemption as soon as 2021. So, what does this mean? It means, in anticipation of these changes you may want to maximize the benefit of using the current higher exemptions and get your estate in order by the end of 2020 as some say the exemption could go as low as $5,000,000.  Minnesota residents also need to consider the Minnesota estate tax which currently is at $3,000,000 per person and you cannot share $6,000,000 per couple.  If there isn’t proper planning the initial $3,000,000 exemption when the first spouse passes away may be lost.  For more information:  https://www.jdsupra.com/legalnews/looking-ahead-to-2021-with-a-focus-on-61595/
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Here are some fun ideas you can do with decorating your home or place of work with pumpkins. I love the idea of creating a pumpkin bowl to hold treats or apples! How creative! Have some fun with pumpkins and remember to keep the seeds so you can roast them for a delicious snack.
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https://www.countryliving.com/diy-crafts/g279/pumpkin-carving-ideas/
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The leaves are changing and temperature is dropping. I love enjoying the fall colors by warming up with this delicious coffee drink. If you need a little "pick-me-up," try this fall pumpkin spice coffee recipe! If you don't like coffee, I bet it is still delicious without the caffeine kick. You can also substitute the dairy with a non-dairy option, and add non-dairy whipped cream! Make your favorite fall drink and enjoy the beautiful colors that surround you.

https://www.thespruceeats.com/pumpkin-spice-latte-4174106

Beginning two months ago, I only felt I could do serious blogs, serious Facebook posts, etc.  Now, I feel that if I only keep up the seriousness until the pandemic is over, I may never be able to make light of things again!  So, here is something that one of the financial advisors I work with shared with me the end of February before the pandemic hit.  It isn't funny, but it is very sarcastic ... The Top Five Reasons to Die Without a Will:

1.  The court dan do a better job deciding how to disburse your assets that you can.  For instance, in talking to a client this morning, she discovered that if she doesn't have a contingency for one of her children predeceasing her, her assets would go to her ex-husband.  I don't think that was her intention.

2.  The court can choose a better personal representative to handle your estate during probate, which will happen if you don't have a will, than you can.  Enough said!

3.  The court can choose a more caring guardian for your minor children than you can.  Not to mention, those children could be in the foster care system until that decision is made.

4.  The government will use your estate tax dollars more efficiently than your favorite charity would use a charitable bequest.  Yes, Minnesota still has a low threshold for estate taxes when you take in to consideration your life insurance, equity in your home and your retirement plans, so without careful planning you will be paying a tax on some assets you were already taxed on.

5.  And, Finally, your grieving loved ones will be better off looking after your affairs without your will.  Keep in mind, you are not doing a will for you, it is a gift to your family.  It is the last thing they will remember about you and it can leave a lasting impression!

Thanksgiving is a time where you get notes, e-mails and all sorts of thank yous sent your way.  I had the opportunity recently to express my gratitude in an unexpected way.  This year, I was introduced to a gentleman in his 30's who was taking care of his wife with terminal cancer.  He wanted to be sure that everything was taken care of in case he passed away - to not add more stress to her situation.  In addition, he wanted to be sure it was taken care of so that when she passed he didn't have to think about it again.  With that relationship, I have received a number of referrals from a support group that he belonged to.

In meeting with one of my prospective clients from that group, she said that meeting with so many of the group's members must be depressing.  I thought for a moment and said sometimes yes and sometimes no, but that I can't get much more positive out of it than negative.  When working with these clients, I am able to make one part of their situation a little bit easier. I may not be able to cure what is physically ailing them, but I can give them peace of mind that the legal piece will be taken care of.

However, there is one additional benefit that comes from working with these clients.  I learn that every day is a gift.  It isn't just words - I truly see that every day is a gift.  Sometimes that means taking the day off from work, pulling my son and his friend out of school and going to a Twins baseball game.

As you celebrate Thanksgiving with your loved ones, truly live like every day is a gift - happy holidays to you and yours!

I love the fall - the colors, the bonfires, football ... But, I hate what follows here in Minnesota - the snowy winter!  However, fall is a great time to do some cleaning and to prepare for the winter to come.  It is also a great time to start getting your legal documents in order.  I used to find that September was a slow month for clients in this area - people were trying to get back in to the swing of things from a fun filled summer.  I am now finding that people want to meet to get things done before the end of the year.

Do a check - do you have a Health Care Directive?  Without one, your family may be forced to go to court to make decisions on your behalf.  Do you have a Power of Attorney?  Again, you may have to go to court to get control and protect your loved one's financial assets.  Do you have a will?  You may not need one, but having an attorney review your assets will help to protect your loved ones if you should pass away unexpectedly,  Did you know that if your spouse is not in title with you on your home, that they may not get possession of it when you pass away - yes, even if they are your spouse!

Consulting with someone to just do a check doesn't need to be hard - it is just like preparing for winter, taken in small steps.  If the snowblower is ready to go; if you have the emergency snow kit in the car; if you have good tires on the car; if you have that extra pair of mittens because we always seem to lose just one mitten in the pair - winter doesn't have to be that difficult.  Making sure you have everything organized for your loved ones helps them to get through the process of handling financial and legal matters while dealing with their own change of season, if something should happen to you.

It's been a while since I have posted in my blog!  No excuses other than life gets busy.  Ahh - that sounds like some of my clients, especially this time of year with tax season, spring cleaning, travel, etc.  Even I am guilty of it!  Although estate planning is so important, only a little over half of the population even have a simple will, let alone a health care directive or power of attorney.  And, the ramifications for not having these for your family can be catastrophic.  We have all heard the stories - probate lasts for years, health care decisions have to be deferred until court approval ...  And, we all mean to get it done, but it is one of those urgent, not important items on your list.  However, it is one of the best things you can do for your family.  You may live to be 100 years old, but why take that risk?  I tell my clients, "You are not doing this for you, but for your loved ones."  Please take the time to make sure they don't have to deal with legal issues while they are also dealing with grief, or struggling to help you with a health situation - the best gift you can give is stability!