Inflation, Recession and Estate Planning … Oh My!

Emerging from a pandemic, the skyrocketing cost of goods, ongoing insurgence in Eastern Europe, and looming interest rate increases– what do they have in common? They all are huge factors in the volatility of the stock market in 2022. With this volatility you can count on changes to the dynamics of estate planning.

Whether it is steps you can take while rates remain low or strategies you can employ as rates rise, NOW is the opportune time to evaluate (or create) your estate and asset protection plan. Depending on your personal goals and situation it may be time to consider your gifting strategy and asset transfer plans.

While rates are low, you may benefit from strategies that include Grantor Retained Annuity Trusts (GRAT) or Charitable Lead Annuity Trust (CLAT). If rates start to rise, you may look to Qualified Personal Residence Trusts (QPRT) or Charitable Remainder Unitrusts (CRUT).

In all scenarios, making sure your wishes are known and giving your heirs the opportunity to avoid the time and expense of probate are great opportunities to plan ahead. Bull or Bear, Up or Down – a sound estate plan is always a good idea. Contact KLG for your complimentary consultation.