Estate Planning in Times of Economic Uncertainty: How to Safeguard What Matters Most to You

Needless to say, the past couple of years have been a rollercoaster ride. If you’re feeling concerned or anxious about the volatile economic landscape right now, you are not alone. Interest rates are on the rise, contributing to a strong seller’s real estate market. The Consumer Price Index, a measure of inflation based on how much consumers are paying for market goods, rose 8.5% between March 2021 and March 2022. Businesses are struggling to recruit and retain quality talent. The economic and emotional devastation caused by COVID-19 continues to impact individuals and families.

In uncertain times, it’s important to take steps to protect what matters most to you. One such step is estate planning. This involves creating a plan that will protect your estate in the event of your death or incapacitation. You can also take steps to safeguard your estate in the event of an economic downturn or other unforeseen circumstances. With all the economic volatility, it’s natural to be a little nervous about the future. But don’t worry – there are things you can do to fortify your estate during these times. In this blog post, we’ll explore some of those options.

I’m Attorney Paul Margerie. At my practice, Margerie Law, I help individuals and families in the Milwaukee area with all aspects of estate planning. I understand that no two estates are alike, and I take the time to get to know my clients and their unique needs. This allows me to create a customized estate plan that will best protect their interests. Learn more about my estate planning services.

Here are my recommendations for how to safeguard your estate during times of economic uncertainty: 

Expand Your Trust Portfolio

One great step to take right now is to explore options for trusts that perform well when interest rates are high. At a basic level, a trust is a legal arrangement in which one person (the trustee) holds and manages property for the benefit of another person (the beneficiary). Trusts can be used for a variety of purposes, including estate planning.

There are many different types of trusts, but not all are well-suited for times of high interest rates. For example, a fixed rate annuity trust may not perform as well during these times. However, there are other types of trusts that can offer more stability and protection during periods of economic uncertainty. These include:

• A grantor retained annuity trust (GRAT)
• A qualified personal residence trust (QPRT)
• An irrevocable life insurance trust (ILIT)

If you’re not sure which type of trust is right for you, an experienced estate planning attorney can help.

Update Your Estate Plan

Another great step to take during times of economic uncertainty is to review your estate plan and make any necessary updates. This is especially important if you haven’t updated your estate plan in a while. Even if you don’t have any major changes to make, it’s still a good idea to review your estate plan on a regular basis. This will ensure that it continues to meet your needs and reflect your current wishes.

If you do need to make changes to your estate plan, there are a few things you should keep in mind. First, be sure to consult with an experienced Milwaukee estate planning attorney before making any changes. This will help ensure that your changes are made correctly and in accordance with your wishes. Second, be sure to update all relevant documents, including your will, trusts, power of attorney, and healthcare directive. Third, make sure to communicate your updated estate plan to your loved ones. This will help them know what to do in the event of your death or incapacity.

An experienced estate planning attorney can help you review and update your estate plan. If you’re not sure whether or not you need to make any changes, an attorney can advise you on the best course of action.

Review Your Estate Tax Exemption

The estate tax is a tax imposed on the transfer of property at death. The amount of the tax depends on the value of the decedent’s estate. For 2022, the estate tax exemption is $12.06 million per person. This means that only estates valued at more than $12.06 million are subject to the estate tax.

The estate tax exemption has been historically high in recent years, but it is set to decrease dramatically in 2026. If you’re concerned about the possibility of a future estate tax, now is a good time to review your estate plan and make any necessary changes. An experienced Milwaukee estate planning attorney can help you with this task.

There are many things you can do to safeguard your estate during times of economic uncertainty. An experienced estate planning attorney can help. Contact me, Attorney Paul Margerie, today to get started.