Met with a very nice and prepared gentleman, along with his son, today. The gentleman's wife passed away recently. I had prepared their Wills years ago and last revised them in 2001. He mentioned that she had some life insurance and an IRA. He was the beneficiary of both.
I mentioned to him - in my estate administration analyses - that he may want to consider disclaiming those assets and allowing them to pass along to their children who are the secondary beneficiaries. Disclaiming those assets will prevent them from being included in the taxable estate of the surviving spouse.
I mentioned that if he does disclaim them, he must do so before he receives them. Discaiming can be much better than receiving it and then trying to give it away. He's going to give the disclaimer some serious consideration. What makes it difficult is that we don't know what Congress and the President will do with the federal estate tax in upcoming years.
What do you think will happen to the estate tax? What do you think "should" happen to the estate tax? Here's your chance to be heard....
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