Estate Planning Red Flag – Your will contains a formula clause
Abstract: Now that the federal estate tax exemption has been set permanently at an inflation-adjusted $5 million (currently, $5.25 million), fewer people are subject to federal estate tax. But that doesn’t mean estate planning is any less important. Out-of-date formula clauses, in particular, can create unwelcome surprises. This article shows how an outdated plan can end up effectively disinheriting the very person it’s supposed to benefit.