Welcome to our new office space!

In August, after working remotely for the better part of 17 months, we were beyond thrilled to return to a beautiful new office space in Falls Church! The new
suite is on the ninth floor and affords spectacular views. The building is nestled amongst a forest of lush green trees and boasts a peaceful pond and walking
trails. Watching the leaves change color in the fall and the landscape transform as winter approaches has been a delight. The office is modern in design and
décor and flooded with natural light. The reception area welcomes you with supple camel leather club chairs and a gleaming white marble coffee bar filled
with tasty beverages. The conference rooms are comfortable and bright with a neutral color pallet that takes full advantage of the gorgeous scenery while also
offering privacy. There are visitor parking spots in the front of the building and dedicated CJM assigned spots in the parking garage behind the building. We are conveniently located near I495, US50, US29 and I66.

The More the Merrier!

2021 has been a year of change at CJM, including adding two new employees! We are thrilled they joined the team and were experts at using Zoom from the
beginning. Emily Holmes started in early January and Rich Grant started shortly after. Both graduated from the Financial Planning program at Virginia Tech, much to the delight of our other Hokies, Jessica and Parker. They offer new ideas and unique experiences we know our clients will benefit from in the years to come. We asked them to share what it was like working at CJM this past year.

Emily: I feel like I just started at CJM; I have learned so much in such a short amount of time! Starting out as an Operations team member, I learned the
innerworkings of what it takes to provide excellent service for our clients. I quickly transitioned into a Client Service Representative where I was able to start
building relationships with our clients. As the new year approaches, I am eager to get to know more of our clients and build deeper relationships with our clients and my coworkers. Outside of work, I enjoy DIY projects and spending time with my two Bichons.

Rich: My first year at CJM has flown by! I have been working hard in Operations learning what needs to be done behind the scenes to service our clients well. It is rewarding to not only put together financial plans and prepare paperwork, but to do it all with such a friendly and knowledgeable team of people. As the new year comes, I look forward to becoming a Client Service Representative and developing my own relationship with our clients. Outside of work, I like to spend time with my friends, travel and savor a good cup of tea.

From the CJM family to yours, have Happy Holidays and a wonderful New Year!

What is Terrified? – Anthony Jones

Earlier this year I was fortunate enough to fulfill a lifelong dream of being a contestant on the game show Jeopardy! Taking the test was an annual exercise
in futility, but lightning struck in 2018 when I got an email offering an in‐person interview about 3 months after taking the test. My initial euphoria over scoring an in‐person interview was tempered by the fact that there were 99 others there as well, many of whom had gotten to this point on multiple occasions. That day, which included another written test and a mock run through of the game itself, went as well as I could have hoped and at the end of the day, I was told that I would be in the contestant pool for the next 18 months. Within two months or so, the woman I sat with during the interview process appeared as a contestant, followed by a few others I recognized. At the very end of my contestant window, I finally received the phone call I had been waiting for since I was 9 or 10. I was offered the chance to be on the show. My excitement turned to momentary terror when I realized that my friends and family, as well as millions of strangers, would be watching.

I was originally scheduled to tape the show in late March of 2020, but COVID ultimately delayed that by 10 months. Unfortunately, Alex Trebek, the show’s
beloved host for over 35 years, passed away near the end of last year, so I would not get the chance to do the show with him. The time had arrived and I
nervously hopped on a flight to Los Angeles to begin my march towards world domination. Jeopardy! tapes 5 shows per day when in production. I arrived at the studios at 6:45 a.m. on Inauguration Day and the staff walked us through the day’s schedule. Before long, we went to the studio for a mock run through. Due to the pandemic, no guests were allowed, so the contestants and staff served as the audience for each episode. The categories for each episode are set in
advance, but the contestants are selected at random. During the taping of the second show, I was picked for the next show. After lunch and makeup, it was
finally time to see if I was ready for my closeup.

The cameras started rolling and I heard, “This is Jeopardy”, followed by my name. It was exhilarating, yet I felt oddly calm. Katie Couric was our guest host. I
didn’t get off to the start I hoped. During each break people come out to each contestant to give advice, etc. I was struggling with the buzzer, but I was too
quick, not too slow. There is a lot happening during the show. You are listening to and reading the question, while watching the red lights on the side of the
board tick down to let you know when to buzz in. Buzzing in too quickly locks you out for a quarter of a second, which is an eternity on the show. I gained some traction over the remainder of the show, but never gained enough momentum to get over the top. On the positive side, I didn’t stare at the camera for 30 minutes without speaking.

Getting to be a contestant on the show was a dream come true. The experience was everything I hoped it would be. Outside of not winning, my only regret was not being able to do the show with Alex Trebek. I even ran into Katie Couric at a traffic light the next night while driving around L.A. She called out to me by name, so I assume we are now best friends. We laughed at the unlikeliness of the encounter and I took a picture lest no one believe me. The show aired on March 17th and can be found on the internet if you missed it live.

Retirement in 2021 – Tim Jones

So what is it like to be “retired”? How does one find fulfillment after a business career that involved multiple interactions with people each and every day?
Those are the questions that we must try to get answered if we are going to be “successful” in retirement.

One of the first things is finding some activities that are enjoyable, but flexible. None of us wants to be committed to doing things all the time on a set schedule ‐ that is what we did when we were working. So finding activities that you can participate in or do when it is convenient is very important. There are multiple opportunities for each of us to volunteer our time and/or talent in our community, so finding some activities to occupy our time is a good idea (and
trust me, your spouse wants you occupied). When you are a type A person, this requires some patience and persistence ‐‐ many volunteer activities are not
operated as efficiently as a well run business, so some activities may be tried and found not to be exactly what we want or need to be doing. But be patient ‐‐ the right opportunity is out there ‐‐ you just have to find it.

So after finding the right mix of activities to do, and starting to do some traveling to places we had dreamed of visiting, along comes COVID. All at once the
activities ceased or were substantially restructured and reorganized. So we did not see people in our day to day activities, and could not visit with others here in our community. Travel ended almost everyplace ‐‐ we did not see our grandsons in Utah for almost 1.5 years. Almost all international travel stopped ‐‐ so the planned trip to Scandinavia in the summer of 2020 was postponed to 2021, and then postponed again until 2022. But thank God for technology ‐‐ Zoom
meetings and FaceTime allowed us to see people and have conversations ‐‐ not the same as face to face ‐‐ no hugs allowed, but there was some interaction and exchange of ideas, smiles, and conversation. But Zoom will not get us to Scandinavia or anyplace else. So what’s in our collective future?

My feeling is that COVID in one form or another is not going away. It will be part of our lives forever, so we need to figure out a way to live with it. With our
vaccinations in place, we are trying to just get on with our lives. This looks different for everyone depending on a variety of factors like life stage, health,
and financial means. It’s your life, and if you are age 74 as I am (or older), you don’t have that many years left to do the fun stuff on your “list”. There are lots
of things that need doing, and some of these things have your name on them. Get busy!!

(The opinions in this article may not be shared by all, but considering that this was written by an old guy, give him a little slack

The first days and weeks after a loss are the hardest; the adjustment is never easy. There is a flood of emotions at this difficult time and many related tasks are very confusing. Most of our clients have never had to deal with all the paperwork and decisions that accompany the passing of a loved one, until they do. Your responsibilities at the moment may seem overwhelming, which is normal.  But remember that there are resources you can draw on.

Planning ahead can make the process easier as my colleague, Tracey A. Baker, discusses in her article Plan Ahead for Uncertainty.

Our clients often turn to us for guidance on what to do in the days, weeks and months after their loved one passes.  Whether you are the executor, widow/widower, or a loved one trying to help, the entire process of settling an estate can be overwhelming and time consuming.  In this article, we break it down so you know what to focus on and when.

To be done within the first week:

1. Make funeral arrangements

If your loved one left instructions for this, follow the steps that they gave you.  Otherwise, gather the family to decide what should be done to best honor your loved one’s memories and what the family can afford. Again, this is a very emotional time, so do your best to accept everyone’s feelings as you work towards a solution.

If the deceased served the country in the armed forces, you may also check with the Veterans Administration to see what they may provide in terms of burial or funeral services.

2. Find a place for the pets

Again, your loved one may have left instructions for you on who will be taking care of the pets. Absent these instructions, see if any family members are willing to take them in, or look into a kennel that can provide for them until you’re able to make permanent decisions.

3. Secure your loved one’s personal property

Make sure their license, phone, computer, house and vehicles are locked up to prevent theft or any other damage to the property. You may want to take small, easily stolen valuables to a safe deposit box.  If the phone automatically deletes text messages after a certain amount of time, you might consider turning that setting off.

Have the mail forwarded to you or whomever else is helping you. Until the house is disposed of, consider have it tended to by a landscaper.

4. Notify their current and/or former employer

Your loved one may be owed a paycheck, pension, or have retirement or death benefits.  Inquire about survivor benefits and insurance policies as well.

To be done within the first month:

1. Ask for death certificates from the funeral home

Many of the remaining steps will require a certified death certificate so that the companies or organizations involved can legally make the changes that you’re requesting.

Most people find that 15 copies are adequate. You can always ask for more if you need them.

2. Locate the Last Will and Testament, and contact the estate attorney

Hopefully, you’ll know where these important papers are kept. If not, look in a filing cabinet or safety deposit box. If your loved one worked with an estate planning attorney, they should have a copy on file and may help with some of the necessary paperwork in the months ahead.

3. Inventory and find the assets, and contact the Financial Planner

It is often helpful at this stage to collect documents and make a file system, if your loved one did not leave an organized list.  The probate court normally requires an inventory of all assets. There are many great resources to help you get organized.  Many of our clients have appreciated this handy checklist to identify important documents that may need to be collected.

Contact their Financial Planner for help. You could also look for their important papers in the home and any statements that arrived in the mail.

Some assets may not have statements that show the current value like the car, house and jewelry. You may want to hire an appraiser to determine the value of the home, and one for valuable personal possessions.

4. Inventory the bills and liabilities

If your loved one did not leave a comprehensive list, watch the mail for any bills. You can also check their online statements to see if there are regularly paid bills through their banking or credit card accounts.  Keep detailed records of any bills you may have paid on behalf of the deceased, especially for final care and funeral expenses. You will probably be reimbursed for these expenses from the decedent’s estate or trust, and some of these expenses will be deductible for estate tax or income tax purposes.

These documents are also included in the checklist.

5. Notify third parties, most of whom will require death certificates
   1. Social Security Administration: contact your local office in person.
   2. Life insurance companies: when you find the policy documents, these normally have instructions for filing a claim.
   3. Brokerage, banking, savings and retirement accounts: unless otherwise stated, call the number on the statement.
   4. All three credit bureaus: send copies of the death certificate and a letter requesting that they mark the accounts as deceased.

6. Cancel items as necessary
   1. Driver’s license: contact your local DMV office.
   2. Credit card accounts in your loved one’s name: call customer service.
   3. Property insurance, such as auto, home, vehicle, etc.: call the agent.
   4. Email accounts: the providers will likely want a death certificate to cancel the account completely.
   5. Social media accounts: you can notify the appropriate company, or in some cases, you can choose to memorialize them instead.
   6. Subscriptions and memberships: contact each provider using the contact information on the statement or website.

The process of settling a loved one’s estate is rarely quick or easy. This article touches on the most time sensitive items but is not a complete list. There are more actions to take in the following months, such as distributing assets to beneficiaries and updating your own estate plan.

Please reach out to us with any questions you have about the process. We are happy to help you find the answers you need at this difficult time.

In October, my mother’s health suddenly failed.  Prior to that, she lived completely independently in our family home that she shared with my father until his death five years ago.  A sharp 80-year-old, Mom still handled her bills, managed her household, drove her car and operated the television remote control and her telephone like a seasoned professional.  While not the most tech savvy, she enjoyed playing games and scanning Facebook on her iPad and was generally happy and healthy.  As Mom’s local support system, my husband and I have spent countless hours in hospitals, doctor’s offices, testing facilities, rehabilitation hospitals and, now, assisted living facilities trying to help my Mom adjust to her “new normal”.  No longer independent or even able to walk, Mom remains without a diagnosis.  She “passes” every test and here, but 4 months later, we still don’t know what’s wrong.

Mom’s story is not unique.  Since October, I have done a lot of reflecting about what we could have done/should have done and want to share a few of my lessons learned:

1. Refusing to plan for a sudden change is NOT A PLAN!  Mom was adamant that she was going to remain in her home until the day she died.  Her support system scrambled to handle all of the planning at a time of tremendous stress.  The non-profit organization “A Place for Mom” (www.aplaceformom.com) was very helpful finding a new living situation.
2. Think ahead to who will handle your finances if your health suddenly fails.  We struggled to get added to accounts, even with Powers of Attorney in place.  Make a list of your regular bills and how they are paid.  My mother had four credit cards and several bank accounts at four different institutions, some auto-pay and some not.  Write down a list of logins, passwords and online resources.  Do not forget to share the password to get onto your computer or iPad!
3. Share the name and contact information for your Primary Care Physician (PCP).  In addition, it is incredibly important to establish a good relationship with him/her.  The PCP is the quarterback of your medical team who will conduct future tests and coordinate ongoing care.  Mom did not have a good connection with her PCP and only visited annually with the office nurse practitioner to update prescriptions.  In situations similar to Mom’s, having an MRI is normal, if not standard.  Due to a lack of communication between the hospital and her PCP, it took Mom 2 ½ months to get hers.
4. Have a current list of your medications and make certain your I.D./driver’s license, current Medicare card and any other insurance cards are readily available.  These items are among the first things a hospital needs.
5. Plan for your pets!  Mom had a small dog and a cat.  The plan for their care was one of the more time-consuming tasks we had.  Discuss who will take your pets if you are unable to care for them and be sure to share the information for your veterinarian along with a current shot record.
6. Emergency alert systems are only helpful if you use them!  Mom had Life Alert but she was not wearing her lanyard.  In fact, we discovered she tried to return the system, annoyed by the recurring cost.  However, these systems come with a strict 2-year contract, which can only be cancelled with a death certificate or signed letter from her current facility that a similar system is being provided.
7. Medicare benefits are complicated and out-of-pocket care is expensive.  Mom is currently in an assisted living facility with top-notch care.  The monthly cost is $11,000, none of which is covered by Medicare or Tri-Care for Life (her military Medicare supplement).  It is important to know the Medicare rules as hospitals and facilities follow Medicare guidelines first, regardless of the supplemental insurance.  Be sure your children know about your long-term-care insurance coverage (information is found in your annual review packet).  Last but not least, be sure they have our information so we can be of help.

While we certainly hope you will never have to deal with the challenges my mother currently faces, they are not unique.  Medical breakthroughs have greatly lengthened life expectancies and with that, have created additional challenges.  Mom’s life changed in an instant with no known cause and even with a family of Planners, we found ourselves unprepared.  Please do yourself and your loved ones a favor and think ahead!

‘Parts’ of Medicare

 Medicare is divided into multiple “parts”, all of which have different types of coverage. It is very important you know your options so you make the best choice for your situation!

Part A – Hospital Insurance

• Helps cover inpatient care in hospitals, skilled nursing facilities, hospice and home health care
• Most people do not pay a premium for Part A

 

Part B – Medical Insurance (Elective)

• Helps cover “medically-necessary” services:
  • Doctors’ services, outpatient care, preventive services to maintain health, and supplies
• There is a premium for Part B

 

Part C – Medicare Advantage Plans

• Similar to an HMO or PPO
• Coverage is run by private companies approved by Medicare
• Includes Parts A (except hospice care) & B, and usually Part D
• Some plans may offer extra coverage
• May join at anytime the plan is accepting new members, and you may terminate at any time and return to original Medicare

 

Part D – Prescription Drug Coverage

• Prescription drug option run by Medicare-approved private insurance companies
• Helps cover the cost of prescription drugs
• May help lower the cost of your prescription drugs and help protect against higher costs in the future
• Must be enrolled in Part A and/or Part B

Please note that Medicare does not provide coverage for medical care during international travel. You will need a supplemental policy in order to be covered abroad.

Medigap – Supplemental Insurance

• Sold by private insurance companies to fill the “gap” in Original Medicare coverage
• There are 12 different Medigap policies (Plans A through L)
• The benefits in Plans A-L are the same for any insurance company
• Must have Part A and Part B

Federal Employee Health Benefits

• Generally helps pay for the same kind of expenses as Medicare
• FEHB plans do provide coverage for emergency care outside of the US
• Even with FEHB you can still get Medicare

When to enroll?

There is a seven month window in which you need to enroll in Medicare: the three months prior to your 65^th birthday, the month of your 65^th birthday, and the three months following your 65^th birthday. If you are currently receiving Social Security benefits, you will automatically be enrolled in Medicare Part A (Hospital Benefits) in the month you turn 65.  Be warned that Medicare charges a penalty that increases the premium costs if you do not enroll in a timely fashion.

If you are over age 65 and still work, you may be covered under an employer or group benefit plan that does not require that you sign up for Medicare right away. Once you terminate employment, there is a special enrollment period to sign up for Medicare that is the eight months following the month your group coverage ends, or the month when employment ends, whichever comes first.  There is no penalty for signing up for Medicare during this time.

If you missed your initial seven month enrollment window and do not fall into the special enrollment period, you may still enroll in Medicare during the general enrollment period.  The general enrollment period runs between January 1 and March 31 each year.  Note that there may be a penalty for signing up during this period.

Questions?

For more detailed information on the different plans and types of coverage within Medicare, we encourage you to visit the Medicare website, www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227).

Most people don’t understand their options when it comes to Social Security. If you don’t make the right choice for your unique situation, it can potentially cost you your hard earned money. To help you understand your options, here are the most important things to consider to avoid costly mistakes.

Retirement Ages

Early Retirement

Age 62 is when most will become eligible for social security, but you will receive a permanently reduced payment by as much as 30% if you start benefits before full retirement age. If you work and collect benefits prior to full retirement age, your earned income could reduce your benefits even further.

Full Retirement

Full retirement age depends on the year you were born (see chart). Full retirement age marks the point at which your benefit will no longer be reduced by collecting early. In addition, if you are still working after your retirement age, your benefits are no longer affected by that income.

Delayed Retirement

Up to age 70, your benefits will increase 8% per year for each year you delay taking benefits after your full retirement age. By age 70, your benefits have grown to their highest level and there is no reason to wait any longer to collect benefits.

Marital Status

Single/Unmarried

If you are single, the decision is fairly easy. Your decision should be made based upon your current earned income, perceived longevity, and need for benefits. (In most cases, waiting until full retirement, or beyond, is the best choice, if possible.)

Married/Divorced

If you are married or divorced, but were married to the same person for at least 10 years, then you could be eligible to collect spousal benefits. Spousal benefits are typically 50% of your spouse/ex’s benefit at their full retirement age. You are eligible to collect spousal benefits if you are at least age 62 and your spouse/ex is eligible for their full benefits. There are special considerations for those with multiple marriages, especially if you were married later in life so please consult your planner.

Widowed

A widow or widower can collect survivor benefits based upon their deceased spouse or ex-spouse’s social security record. A survivor is entitled to 100% of their spouse’s benefit as long as their deceased spouse had not started collecting benefits, they were married for 10 years or more, and the survivor did not remarry prior to age 60. If the deceased spouse started taking benefits, the survivor is entitled to 50% of their benefit. Benefits can begin as early as the survivors 60^th birthday, but would be reduced for early retirement. Each case is unique with contingencies based upon age, so please consult your planner for details on your certain situation.

How to Apply for Social Security

1. Apply at least 3 months prior to the date you wish to start your benefits. Keep your application number for future inquiries.
2. Apply online at ssa.gov.
3. Wait for the call or confirmation letter from Social Security.
4. Provide them with any additional documentation they request.
5. Your benefit confirmation letter should arrive in the mail with the date of your first benefit.

Questions?

For more detailed information on your options, you can visit the Social Security Administration’s website, www.ssa.gov, call The Social Security Administration at 1-800-772-1213, or call your financial adviser to discuss your unique situation.

Estate planning is an important piece of the financial planning puzzle because it allows you to dictate what will happen to your assets when you are not able to express your wishes due to incapacity or death. From our oldest client who is close to 100 years old to our youngest clients in their 20s, estate planning is imperative regardless of wealth because there are various factors to consider at any age. The following are some of the most common estate planning mistakes that we see:

• Failing to have any estate planning documents

Not having documents in place can have consequences not only at your death but also when you are still living. If you become incapacitated, an Advanced Medical Directive (in Virginia) outlines your wishes in regards to medical treatments and procedures and can name a person to make health care decisions for you. If you do not have documents in place, a court may assign a person for you and decisions may be fought in court similar to the Terri Schiavo case in the early 2000s. At death, not having documents in place can have additional consequences including potentially unnecessary expenses for probate or having assets distributed to your heirs according to the intestacy laws of your state rather than your wishes.

• Not having accounts titled correctly

So you had estate documents written up; (great work!), but this isn’t necessarily the last step. You now have to implement the plan and the first step is usually updating the ownership (title) of your assets according to the estate documents. For example, you may have a Trust created to hold your son’s inheritance until age 30 to prevent him from spending his entire inheritance if you were to die while he is still young. In this case, if you do not update your account titling to put the assets in the Trust, then the assets would pass according to your Will and he might receive all of the assets outright. The expense of creating the Trust and all of that hard work would be for naught. At CJM, we ask for a copy of your documents after they are created so we can help to make sure that your estate plan is implemented.

• Having beneficiary designations that are out of date

There are certain accounts that pass to stated beneficiaries regardless of what the estate documents specify. They include retirement accounts, life insurance policies, and can include bank or investment accounts that are titled as transfer/payable on death (TOD/POD). These accounts pass to the beneficiaries that were specified in the paperwork for that particular account. Beneficiary designations should be updated at each life event such as the birth of a child, death of a family member, and divorce. There are horror stories of an ex-spouse erroneously inheriting a 401(k) or life insurance policy, and a child accidentally disinherited because the beneficiary designation was not updated. This is why we include a beneficiary designation page in each annual review presentation, every year.

• Having estate planning documents that are too old

Picture this: Your documents were written 20 years ago in 1997 when the federal exemption was $600,000 and the top estate tax rate was 55%, and HIPPA didn’t exist. The current federal exemption level is $5,490,000 with a top tax rate of 40%. As you can see, the planning that was done to protect assets from federal taxation back in 1997 may no longer make sense and actually unnecessarily complicate the process or have other unintended consequences (such as missing basis step-up) in 2017. Other issues of having documents that are “too old” could include your power of attorney being rejected by financial institutions and your advanced medical directive being rejected by a health care provider because it lacks the necessary HIPPA language. If these two documents are more than 7 or 10 years old, institutions will often not accept them. Similar to beneficiary designations, you should review and possibly update your documents at any major life event, in addition to having them reviewed at least every 7 to 10 years.

Learn more about the importance of estate planning from our estate planning two-part video series featuring CJM CEO, David Greene, and attorneys Daniel Vaughan and Martha Sotelo, from Vaughan Fincher & Sotelo, PC. The videos can be found on our website here.

Disclaimer: The information in this article is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from CJM Wealth Advisers, Ltd. or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this article should act or refrain from acting on the basis of any information included in, or accessible through, this article without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.

Source: Social Security Administration

Starting in August 2016, Social Security is adding a new step to protect your privacy as a my Social Security user.  This new requirement is the result of an executive order for federal agencies to provide more secure authentication for their online services. Any agency that provides online access to a customer’s personal information must use multifactor authentication.

When you sign in at ssa.gov/myaccount with your username and password, we will ask you to add your text-enabled cell phone number.  The purpose of providing your cell phone number is that each time you log in to your account with your username and password, we will send you a one-time security code you must also enter to log in successfully to your account.

Each time you sign into your account, you will complete two steps:

• Step 1:  Enter your username and password.
• Step 2:  Enter the security code we text to your cell phone (cell phone provider’s text message and data rates may apply).

The process of using a one-time security code in addition to a username and password is one form of “multifactor authentication,” which means we are using more than one method to make sure you are the actual owner of your account.

If you do not have a text-enabled cell phone or you do not wish to provide your cell phone number, you will not be able to access your my Social Security account.

If you are unable or choose not to use my Social Security, there are other ways you can contact us.

As a financial planner I am fortunate to watch my clients live, work, retire (and sometimes) move all over this great country of ours.  All this moving around has created a very spread out client base with very different state estate tax rules and regulations.  Since a well thought out, written and funded estate plan is central to any client’s long-term financial well being, it is important that clients who recently relocated update their estate planning documents.

Since the Federal estate tax exemption is now $5.45 million dollars per person, this means a couple can shelter up to $10.9 million dollars free from Federal estate taxes in 2016.  While this may be subject to change at a later point in time, we are finding that the state estate tax rules, while lesser known, are at times creating more of a planning issue for our clients and their estate planning attorney.

The chart below details which states have an estate tax.  Washington has the highest rate at 20%.  New Jersey has the lowest estate tax threshold in the country starting at $675k and 16%.  Virginia has no estate tax.  Maryland is attempting to align with Federal estate tax rules by 2019.  The District of Columbia remains at $1mm and 16%.

Does your state have an estate tax?  If the answer is yes and you have questions, make sure to give your planner a call.  If you live in a state that has an estate tax, you need a cohesive plan coordinated by your estate planning attorney and financial planner to address this important issue.  Otherwise, your heirs may be in for quite a shock.