Estate Planning Attorney Milestone: Two Million Net Worth
Who cares about the two million net worth?
If you live in Washington State, you do.
Once you get over 2 million dollars in assets everything is taxed at 19%.
Think that’s a long way away for you and your family? Guess again.
Here’s how easy it is to get to two million in assets.
Let’s say you have a house. It’s appreciating like crazy. You bought it for $500,000 and Zillow says you’re at $850,000 now.
Cha-Ching: we’re at $300,000.
If you’re married you have a life insurance policy (and if you don’t you should get one): 1 million each (to cover the mortgage on your house and at least a year of living expenses) that goes to the estate for calculation when you pass away.
Cha-ching: we’re at $1,300,000.
What about retirement accounts? 401K? Roth IRA? You’ve got those right (if you don’t you need to get going!)? Over the course of regular saving for you and your wife that easily comes to $700,000.
Boom: we’re at $2,000,000.
Whether or not these exact figures apply to you or not (and depending on how old you are they may or may not), the point of this article is simple: pay attention to your net worth.
When you start creeping up around $1,500,000 in assets it’s time to start planning to avoid those taxes. Otherwise you’ll be giving a very nice gift to the government.
P.S. Do you have kids? Have you completed guardianship paperwork? Have you done it correctly? Click here to find out what happens if you don’t do anything: Are you okay with a judge choosing the guardians of your children?
P.P.S. Do you own a business? Do you have a plan so the business, and your family, can survive if something happens to you? If not, click here to learn how simple it is to protect your business and your family from tragedy: 5 Ways to Protect Your Business from Catastrophic Failure.
P.P.P.S. Do you have no kids and think you don’t need an estate plan? Single and think a will is only for married couples. You couldn’t be more wrong. Click here to learn more: 5 reasons estate planning is a must have even if you don’t have kids.
Christopher Small is a Kirkland estate planning attorney who helps people get rich and live forever. He is also the owner of CMS Law Firm LLC.