The estate tax conundrum

• 54% of affluent Americans (annual household incomes of $150,000 or more) surveyed have taken steps to plan their estates.
• 37% of affluent Americans surveyed have not taken any steps to plans their estates.
• 33% of those surveyed say they don’t know where to start.
• 49% of those surveyed expressed more concern about the estate tax than one year ago.
• 73% of Americans with $5 million or more in assets expressed more concern about the estate tax than one year ago.
• 56% of Americans with $2 million or more in assets expressed more concern about the estate tax than one year ago.

Of those surveyed who had begun to plan their estate, the tools they have used suggest an affinity for straightforward steps, with fewer opting for a variety of powerful, but more complex, tools that are readily available:

• 81% had written a will
• 68% had talked to family members about their intentions
• 63% had created a Power of Attorney or Living Will
• 51% had created a Living Trust
• 40% had purchased life insurance for estate liquidity or to pay estate taxes
• 22% had created an Irrevocable Life Insurance Trust

Of the more than half of respondents who had begun estate planning:

• 74% worked with an attorney
• 47% worked with an accountant
• 28% percent worked with an insurance agent

Source: The Hartford Financial Services Group Inc.