The Price of Planning Ahead INFLATION’S HIDDEN IMPACT ON YOUR ESTATE
Most of us notice inflation when we check out at the grocery store, not when we think about our estate plan. Prices for everyday items are creeping up, but those same price changes can also impact the value of what we own. When that happens, our estate plan may need a second look. Inflation means that money doesn’t stretch as far as it used to. A dollar today buys less than it did a few years
ago. Homes, cars, and investments all fluctuate in value due to inflation. In the 1950s, the average home sold for about $7,400. Today, it’s well over $370,000. Wages have also increased, albeit at a slower pace. That gap explains why inflation matters when estate planning. When the cost of goods and property rises, the total value of our estate rises with it. That sounds positive, but it can also push an estate closer to federal or state tax thresholds. A house valued at $1 million today might be worth $1.5 million in a few years, and that extra half-million could create new tax questions. Families sometimes find themselves paying more in taxes, only to watch those assets drop in value soon after. The best way to handle this issue is to plan early and keep your plans updated. We can start by reviewing our estate annually and comparing it to current tax limits. Adding beneficiary designations to accounts, such as life insurance or retirement funds, keeps those assets outside the taxable estate. Giving modest gifts to family or charities can reduce overall value while allowing us to see the results in our lifetimes. Inflation is constantly changing, and our plans should adapt to it accordingly. Reviewing what we’ve built every year helps ensure that our loved ones receive what we intend, without unwelcome surprises when the time comes.
RESOLUTE PRACTICES: ACTIVE LISTENING
For 2026, we are exploring practices that have the capacity to shape our lives and make us more resolute. To recap, being resolute is not about blindly standing by your current thoughts. It is about self-examination that leads to a deeper understanding of your beliefs. From that foundation, you can remain steadfast while demonstrating compassion, integrity, and being true to your word. Last month, we talked about gratitude and how the act of being grateful helps you discover new meaning in your life. This month, I invite you to practice active listening. Like gratitude, active listening is often not considered when someone attempts to ground themselves in their beliefs, but it provides an on-ramp to greater understanding. To accomplish this, you must first consider that there may be gaps in your current ideology. When you are open to this notion, you welcome new input from trustworthy sources (friends, family, credible research, etc.). The key is to listen intently
and focus on the information they are sharing. Too often, people spend the listening portion of a conversation crafting their responses instead of hearing and processing what their conversation partner is saying. If you are unsure how to begin, consider practicing some of these tips in your next conversation. 1. Ask clarifying questions. Instead of responding immediately with your own thoughts or opinions, seek
3. Be patient. You must be willing to sit in silence, comfortable or not. When you show the speaker you are fully present and not rushing them, they are more likely to be candid. As you employ these techniques, consider keeping a journal to track your personal growth. The more conscious you are of your habits and their impact, the more likely you are to see improvement in the desired areas of your life.
understanding from the person speaking.
2. Give your full, undivided attention,
and use nonverbal cues to show you are listening. This involves removing distractions (putting your phone down, turning off the television, pausing music, etc.) and shifting your body toward your conversation partner. While they speak, be sure to remain open with your body language by uncrossing arms and legs and nodding as appropriate.
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