DuPont Wealth - July 2021

LET’S BUST 4 COMMON ESTATE PLANNING MYTHS

MYTH 3: TRUSTS AVOID ESTATE TAX. Many people create trusts to hold assets while they’re alive in order to avoid the time and expenses of probate court — a will is “proved” in a court of law that it is truly the deceased’s last testament. Trusts will not help you avoid estate taxes, but you should still seek legal advice since certain trusts can be used as part of a strategy to reduce (or even eliminate) estate tax liability. MYTH 4: I’LL HAVE TO PAY A GIFT TAX IF I GIVE SOMEONE OVER $15,000 AYEAR. Aside from your spouse, almost anything you give someone over $15K — except money paid directly to a medical or educational institution or charity — in a single year simply reduces your lifetime gift and estate tax exclusion amount. This amount is currently $11,580,000. It’s only if you go over that amount that you’ll have to start paying. That said, you will have to keep track of how much you’ve reduced your lifetime exclusion amount by and file a gift tax return, so if you don’t want a hassle, you could stay within the $15K per year.

As we come across family wills and estate plans in the movies and news, we tend to build up certain conceptions (or myths) of what the process of estate planning actually entails. Let’s break those myths wide open and see what these various parts of estate planning truly look like. MYTH 1: I’MTOOYOUNG FOR AN ESTATE PLAN. Whenever we see a will being discussed in a movie, it’s typically because a very elderly member of the family has passed. However, you can be very young when you suddenly pass away, such as the 46-year-old Zappos founder previously featured who didn’t have a will even though he was worth nearly $1 billion. It’ll cost his family millions of tax dollars and attorney fees to laboriously resolve his assets post-mortem. MYTH 2: I DON’T NEED AN ATTORNEY AT ALL. You can’t fix what you don’t know, and that goes especially for your estate planning paperwork. You may not realize that certain terminology or promises will cause serious legal problems in the future unless you are a practiced estate planning attorney. That’s why you should always have your estate plan drawn up by an experienced lawyer to ensure your family won’t have to endure heartache and headaches.

Thanks for joining us! We hope these tips will help you and your family. Let us know at DuPont Wealth Solutions if you have any questions!

SUDOKU

THE BEST TEXAS-STYLE SMOKED BRISKET

Inspired by AllRecipes.com

INGREDIENTS

Wood chips

1/4 cup chili powder

1/4 cup paprika

1/4 cup garlic powder

1/4 cup white sugar

1/4 cup onion powder

1/4 cup ground cumin

1/4 cup salt

1/4 cup cayenne pepper

1/4 cup pepper

1/4 cup brown sugar

10 lbs brisket

DIRECTIONS

1. In a bowl, soak wood chips in water overnight. 2. In a large bowl, mix paprika, white sugar, cumin, cayenne pepper, brown sugar, chili powder, garlic powder, onion powder, salt, and pepper. 3. Rub spice mixture on the brisket and refrigerate for 24 hours. 4. Preheat smoker to 230 F. Drain wood chips and place them in the smoker. 5. Smoke brisket until it has an internal temperature of 165 F. 6. Remove brisket and wrap it in aluminum foil. 7. Smoke brisket further until it reaches an internal temperature of 185 F.

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