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513-721-1513 | ZimmerLawFirm.com October 2024
ESTATE TAX LAWS IN FLUX What the 2024 Election Could Mean for Your Assets
As the 2024 election approaches, discussions surrounding potential changes to estate tax laws are swirling. Estate taxes, often called “death taxes,” are imposed on asset transfers after someone has passed away. Shifts in political leadership welcome differing philosophies about taxation, including estate planning taxes. It’s essential to understand how these changes may affect your estate and why now is the time to review your plans with us. Changes to these laws could impact how your Living Trust should be drafted, and your estate planning strategy. Current Estate Tax Laws As of 2024, the federal estate tax exemption remains at $13.61 million per individual. This means estates valued below that threshold are exempt from federal estate taxes. Married couples can combine their exemptions, totaling $27.22 million. However, the current high exemption, implemented under the Tax Cuts and Jobs Act (TCJA) in 2017, will expire at the end of 2025. If new legislation is not passed, the exemption will revert to pre-2018 levels (estimated to be about $7 million, which is the $5 million exemption from 2017 adjusted for inflation). It’s important to note that this reduction will likely bring many estates currently exempt into taxable territory. The Impact of the 2024 Election on Estate Tax Laws The outcome of the fall 2024 presidential and congressional elections could significantly impact future estate tax laws. If a
more progressive administration takes power, we could see efforts to lower the federal estate tax exemption even further, possibly below $5 million. In addition, some lawmakers have proposed a graduated tax system, where larger estates would face higher tax rates — similar to income taxes. This could increase the overall tax burden on wealthy individuals and families. However, if a more conservative administration is elected, we may see efforts to extend the current high exemption level beyond 2025 or even push for the elimination of the federal estate tax altogether. However, with concerns about the federal budget deficit and political gridlock, it remains uncertain whether these efforts would succeed. Control of Congress must also be considered. Why It’s Important to Review Your Estate Plan With the potential for changes to estate tax laws lingering, it’s more important than ever for individuals to review their estate plans in 2024. We drafted many estate plans under the assumption that the current high exemption amounts would remain in place. If the exemption drops to $7 million or even lower, a large portion of an estate previously protected from federal taxes may become subject to tax. Without proper planning, this could lead to higher tax liabilities and reduce the amount of wealth transferred to heirs. Changes to estate tax laws could also impact charitable giving strategies, life insurance policies, and business succession plans. For business owners, estate taxes can even affect their ability to pass down the family business. Without the right planning, heirs might be forced to sell the business or its assets to cover estate tax liabilities. Proactive Estate Planning Is Key Remember, estate planning is not a set-it-and-forget-it thing. It’s an ongoing process that requires regular updates to reflect changes in laws, financial circumstances, and personal goals. Staying proactive and revisiting your estate plan regularly is essential to ensure it aligns with the current legal landscape and limits tax exposure.
Are you ready to review your estate plan? Give us a call to set up an appointment — we’ve got you covered!
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HOW TO SIDESTEP PROBATE Simple Ways to Avoid Probate With Your Assets
Beneficiary Designations One straightforward method is to designate beneficiaries directly on accounts such as IRAs, life insurance
Avoiding probate is a common goal for many when planning their estate, and for good reason. Probate is the legal process through which a deceased person’s assets are distributed under court supervision. This process can be time-consuming, costly, and public — all good enough reasons to find an alternative that allows your estate to pass directly to your loved ones. First, understanding what probate involves is crucial. Probate is the distribution of assets in your name at the time of your death. Without proper planning, these assets must go through probate before being legally transferred to your heirs. However, several strategies can ensure your assets bypass the probate process, saving your beneficiaries time, money, and stress. Here are three effective ways to avoid probate.
automatically transferring assets to your designated beneficiaries. Revocable Living Trusts Another powerful tool is creating a revocable living trust. You transfer your assets into the trust, and you can remain the trustee during your lifetime, managing the assets as you see fit. Upon your death, the successor trustee you’ve named will distribute the trust assets to the beneficiaries according to your instructions in the trust document — again, without probate. Incorporating these strategies not only simplifies the distribution of your assets but also provides peace of mind, knowing that your beneficiaries can avoid the complications of probate.
policies, and retirement plans. Doing so will transfer these assets directly to the named beneficiaries upon your death without going through probate. It’s vital to keep these designations up to date to reflect your current wishes. Payable on Death (POD) and Transfer on Death (TOD) For bank accounts, you can set up a Payable on Death (POD) designation, which allows the account’s contents to be transferred directly to a named beneficiary when you pass away. Similarly, Transfer on Death (TOD) registrations can be used for brokerage accounts and other eligible assets. These designations are simple to set up and effectively bypass probate by
The Urban Dog’s Survival Guide How to Make Your Apartment a Paradise for Your Pooch
Drown out the chaos with white noise. Apartment life is noisy, and for a dog, every hallway sound is a potential intruder or a friend they haven’t met yet. To keep the barking at bay and help your dog stay calm, consider placing a white noise machine near the source of everyday noises, like the front door. It’s like giving your dog their own personal bubble of Zen, shielding them from the chaos of the outside world. Treats are a dog’s best friend. Navigating the bustling common areas of an apartment building can be a sensory overload for your pup. To keep them focused and calm in busy lobbies and elevators, arm yourself with their favorite treats. Not only does this keep their attention on you instead of the swirling vortex of scents and sounds, but it also makes these common spaces a source of positive reinforcement. Elevator rides suddenly become much more appealing when a tasty snack is involved!
Mental gymnastics keep them active. Just like us, dogs need mental stimulation to stay sharp and content. Incorporating mental enrichment activities into your dog’s daily routine can make a big difference, especially on those rainy days when a long walk isn’t in the cards. Puzzle feeders or a good old game of hide and seek with treats can keep their brains buzzing and boredom at bay. Create a cozy corner. Set up a dedicated space in your apartment where your dog can retreat and relax. This could be a cozy corner with their bed, some favorite toys, and maybe even an item that smells like you. It’s their haven from the hustle and bustle of apartment life! Living with a dog in an apartment doesn’t have to be ruff. With these simple adjustments, you can ensure your pup feels as much at home in your apartment as you do. After all, it’s not just your space — it’s their den, too!
Living in an apartment with a furry companion has quirks and challenges, especially when your roommate is a barking bundle of joy. While we love having them around, keeping our canine pals happy in a compact space requires a bit of creativity and a lot of care. Here are some tail-wagging tips to ensure your dog is as comfortable in your apartment as you are!
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In the early 20th century, Coney Island was the beating heart of America’s burgeoning amusement park industry. Three rival theme parks — Steeplechase Park, Luna Park, and Dreamland — engaged in fierce, cutthroat competition that dramatically reshaped this iconic destination. A Tawdry Reputation Transformed Coney Island’s reputation was once far from wholesome. Known as “Sodom by the Sea,” it was considered a tawdry, vice-filled destination. That began to change in 1897 when Steeplechase Park opened. Its founder, George Tilyou, sought to bring clean fun to the masses, creating a lighthearted atmosphere exemplified by his iconic “Funny Face” caricature. Stealing Ideas and Underhanded Tactics Tilyou’s success soon drew the attention of rival park operators. In 1902, he lured away the founders of the popular “A Trip to the Moon” attraction from the upcoming Luna Park. These underhanded tactics were common, as the parks constantly copied each other’s rides and acts to one-up the competition. Rapid Innovation Drives Change This competitive spirit drove rapid innovation at Coney Island. Over just a few years, the parks introduced groundbreaking new attractions like the Rotating Barrel, Thunderbolt roller coaster, and the world’s largest Ferris wheel. They transformed the public’s perception of amusement parks, elevating them from sideshows to immersive, technologically advanced experiences. The Birth of the Modern Amusement Park The era of Coney Island’s dueling theme parks was short- lived, lasting only from 1904 to 1911, but its impact can still be felt today. The parks’ relentless one-upmanship drove the rapid evolution of the amusement park industry, laying the foundation for the iconic destination Coney Island has become. What began as a vulgar locale became a glittering symbol of American ingenuity and the pursuit of wholesome fun. While the tactics of these rival parks may have been underhanded, the lasting legacy of their fierce competition is undeniable. The rapid innovations, technological advancements, and shifts in public perception from this crucible of competition continue to shape the amusement park experience today. The Rivalry That Redefined Entertainment Coney Island’s Cutthroat Carnival
TAKE A BREAK
AUTUMN BOO CANDY COFFEE FOLIAGE
GHOST GOURD MOON SPOOKY SOUP TAILGATE TOUCHDOWN
PUMPKIN PIE FRENCH TOAST
Inspired by AllRecipes.com
Ingredients
• 1 1/2 tsp vegetable oil, or as needed • 1/2 cup half-and-half • 1/4 cup canned pumpkin purée • 3 large eggs • 1 tsp ground cinnamon
• 1 tsp vanilla extract • 1/4 tsp pumpkin pie spice • 1/4 cup finely chopped walnuts
• 8 slices day-old bread • Maple syrup, to taste
Directions 1. Lightly oil a skillet and heat over medium heat.
2. Whisk half-and-half, pumpkin purée, eggs, cinnamon, vanilla, and pumpkin pie spice together in a bowl. Stir in walnuts until evenly distributed. 3. Place 1 slice of bread in the bowl and let it soak briefly to coat both sides. Lift bread to let excess liquid drip back into the bowl, then transfer to the hot skillet. 4. Cook for 2–3 minutes or until golden brown, then flip and cook the other side until done. 5. Stir batter to redistribute walnuts and repeat with other slices of bread, cooking in several batches if necessary. 6. Serve warm with maple syrup.
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513-721-1513 ZimmerLawFirm.com 9825 Kenwood Road, STE 201 Cincinnati, OH 45242
INSIDE THIS ISSUE
It’s Election Year — 2024 Is the Year to Review Your Estate Plan
1
Escape Probate With These Estate Planning Tips
2
Turn Your Apartment Into a Dog-Friendly Haven
3
Pumpkin Pie French Toast
The Cutthroat Competition Behind Coney Island
The Legal Drama Behind Larry King’s Handwritten Will
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Lessons Learned From Larry King’s Handwritten Will
When iconic TV host and author Larry King died at age 87, he left a legacy of iconic interviews and memorable moments over a long radio and television career, including 25 years at CNN. But an unexpected twist was his secret handwritten will that dramatically changed the plans for his estate. Despite its brevity and simplicity, this last-minute discovery sparked a heated legal battle. Handwritten or “holographic” wills are legal in many states, including California, where Larry King resided. These wills don’t require the usual formalities of being witnessed but must be entirely written and signed by the testator — the person to whom the will belongs. While this might seem like a convenient shortcut, it often leads to serious legal challenges, particularly around the will’s credibility and the testator’s intentions.
In Larry King’s case, his handwritten will excluded his wife, leaving his entire estate to his children. This was a shock, especially since California law entitles a surviving spouse to half of all the assets acquired during the marriage. King’s wife was understandably taken aback, leading to a family feud ultimately resolved through a confidential settlement. This situation is a stark reminder of why handling estate planning with thorough care and legal guidance is crucial. While a handwritten will can be a legal document, it’s generally better suited for straightforward estate circumstances. A more comprehensive approach is advisable to avoid family disputes in more complex situations, like Larry King’s, who had considerable assets and a blended family.
Photo: Peabody Awards
Larry King’s situation emphasizes the crucial importance of having a well-thought-out estate plan that considers all legal aspects and potential family dynamics — King was married eight times to seven women and had three surviving biological children. While handwritten wills are a valid option, they should be used cautiously. Taking proactive steps in estate planning can help prevent conflicts and ensure your final wishes are respected, providing peace of mind for you and your loved ones.
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