Business Succession, Definitions, Estate Planning, Probate, Uncategorized, Wealth, Wills

How Inflation Affects Estate Planning

Inflation is all over the news.

Some say it’s not that big of a deal, and it’s all hype. Others predict the late 70s and early 80s are about to happen again.

I can’t say which is the way to look at it, but inflation can be an issue for estate planning.

Simply put, if your salary and assets keep up with inflation, but the estate tax rate stays the same, you’re obtaining assets at a faster rate.

And, due to the magic of compounding interest, you could be well above the estate tax exemption amount in no time!

Worse yet, if the estate tax exemption amount goes down (as it is currently set to do in 2026) while inflation goes up, you are going to get to the exemption amount even faster!

Going over the estate tax exemption amount is a nice problem to have, but it’s going to trigger a big tax bill from you to Uncle Sam.

That means less money to go to your loved ones. More headaches in dealing with accountants and lawyers. No one wants that.

To be honest, some estate plans are not enough to address this concern; having no estate plan, only a will, or even a revocable living trust are not enough to fix this estate tax problem.

But, if there’s a will (pun intended), then there’s a way. And a comprehensive estate plan, such as funding an irrevocable trust, buying life insurance policies, and gifting away your estate, could possibly fix your concerns.

Legion Law can help you, your loved ones, and your legacy fight inflation too by providing these comprehensive estate plans that cater to your needs.

It wouldn’t be the Legion Law Letter without offering information on how to get in touch with your estate planning and probate attorney. Feel free to schedule a meeting at legionlawpllc.com/contact-us/ for any questions, concerns, or issues you need resolved.

Cheers,


Derek Christensen

Founder of Legion Law, PLLC