COVID-19 Pandemic created opportunity for Estate and Business Succession Planning

The COVID-19 Pandemic has created a once in a lifetime opportunity for Estate and Business Succession Planning

Stay at home orders across the Country have allowed people to pick up new hobbies, spend more time with family, and find new means of entertainment.  One thing that may not have crossed your mind while sitting at home is reviewing your estate plan.  If you decide to pick up and read your estate plan, you should know there are tangible planning opportunities that have been created as a result of the COVID-19 pandemic.

The Perfect Factors for Transitioning Wealth

Transferring your business or estate in the past may have resulted in a taxable gift.  The combination of the highest estate and gift tax exclusions ever, suppressed assets values, and low interest rates have created a unique opportunity to make a potentially tax free transfer to the next generation.  The Tax Cuts and Jobs Act of 2017 increased the federal gift and estate tax exclusions.  The exclusions in 2020 are $11.58 million per individual, or $23.16 million per couple.  These increases are scheduled to sunset in 2025 and revert back to $5 million.  The good news is that you can take advantage of these exclusions now by gifting or using advanced Trust planning techniques.

It’s not all about Taxes

Typically the hardest decision when structuring an estate plan is figuring out “Who am I going to trust to handle all of this when I’m gone?”  Administering an estate or taking on the role as a Trustee can be a complex responsibility, especially when you own a business.  Knowing who is going to handle your estate can give you and your family peace of mind.  The number one piece of advice for clients is to be proactive with your planning.  Examine your assets, review your asset location and management.  Talk with an advisor about your family dynamics.  Is your advisor prepared to handle issues associated with blended families, sibling conflict, or spendthrifts?  If you own a business, your succession plan should be an ongoing process that is reviewed regularly and may change over time.  If transferring your business may result in a gift or estate tax liability, review your liquidity levels and funding sources.   Talk to your successors and review the plan to prepare the next generation.

Nicolet Wealth Management delivers on the promise of real people and real conversations.  Our Fiduciary Services team can provide trust services, estate settlement, and multi-generational planning.  Our dedicated local team can help manage your affairs in a customizable fashion by working in partnership with your tax and legal advisors when it really counts.  Please contact Jake Klaus or your Nicolet banker if you have any questions or would like to discuss planning opportunities.

Jake Klaus

Jacob Klaus J.D., CFP®
Wealth Advisor – Fiduciary Specialist
Nicolet Wealth Management
111 N. Washington St. | Green Bay, WI  54301
Direct: (920) 617-5324
[email protected]

Investment and insurance products:

Are Not FDIC Insured
May Lose Value
Are Not Bank Guaranteed
Are Not Deposits
Are Not Guaranteed by Any Federal Government Entity
Are Not a Condition to Any Banking 
Service or Activity

Nicolet Wealth Management is a brand name that refers to Nicolet National Bank and certain of its departments and affiliates that provide investment advisory, trust, retirement planning and insurance services.

Nicolet Advisory Services, LLC, is an investment adviser, registered with the U.S. Securities and Exchange Commission, and an affiliate of Nicolet National Bank.  Nicolet Advisory Services, LLC recommends the brokerage and custodial services of TD Ameritrade, Inc., member FINRA/SIPC.  TD Ameritrade is not affiliated in any way with Nicolet National Bank or its affiliated companies.

Trust services are offered through Nicolet National Bank, a national bank with trust powers.  Trust services utilizes SEI Private Trust Company (SPTC) as its custody provider.  SPTC is not affiliated in any way with Nicolet National Bank or its affiliated companies.

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