Navigating Estate Planning: Answers to the Top 5 Questions for Global Payments Employees

Healthcare Provider Update: Healthcare Provider for Global Payments Global Payments, a prominent payment technology and software solutions provider, collaborates with various insurance providers to offer healthcare benefits to its employees. While specific healthcare providers may vary by region and plan, large insurers like Anthem and UnitedHealthcare are commonly associated with companies of this size, offering employer-sponsored health coverage options. Potential Healthcare Cost Increases in 2026 As we look toward 2026, employees of Global Payments may face significant increases in healthcare costs. A projected wave of premium hikes could see rates exceed 60% in some states, severely impacting out-of-pocket expenses. With many employers eyeing strategies to offset rising expenses, such as increasing deductibles and out-of-pocket maximums, employees must prepare for a potential financial strain. A recent study indicates that over 51% of large companies plan to shift more healthcare costs onto their workforce, coupled with the expiration of enhanced federal subsidies, which might ultimately leave employees with thousands in additional costs for same or lesser coverage. Careful planning and early decision-making regarding benefits will be crucial for navigating these changes effectively. Click here to learn more

Estate planning is a complex process that need for considerable thought and preparation, particularly in light of changing tax and regulatory requirements. The estate planning landscape is dynamic; by the end of 2025, the regulations in place now are expected to have undergone major changes. Estate plans must be reviewed in light of this impending change to make sure they are still appropriate and in line with Global Payments individuals needs and objectives.

The conversation that follows tackles the most common questions by Global Payments individuals and others about estate planning, based on knowledge from Fidelity's Advanced Planning Team, which consists of professionals including Terri Lyders, Mike Christy, Sander Bleustein, and Lisa Pro. Their combined knowledge simplifies complicated estate planning issues and provides direction and clarity for handling this important procedure.

One of the main worries is what happens if gifts are made below the exemption barrier, which as of 2024 is $13.61 million per person, and if this exemption is reduced after 2025. The regulations issued by the Treasury Department in November 2019 guarantee that those who use the higher exemption amounts for gifts given between 2018 and 2025 won't suffer negative consequences when the exemption goes back to what it was before 2018. With this clause, there is no more concern about a 'clawback' on contributions that surpass future exemption limits, which encourages thoughtful giving without fear of future tax consequences. Furthermore, Global Payments individuals can give gifts to numerous recipients totaling up to $18,000 per year without exceeding their lifetime exemption cap.

The federal estate tax is applicable to all assets left to heirs, regardless of the kind of asset or account in which it is held. However, depending on the kind of account, the asset transfer process can differ greatly. Retirement accounts, like 401(k)s and IRAs, for example, have unique tax implications and transferability restrictions. Typically, gifting methods concentrate on transferring taxable assets, such as real estate or brokerage accounts, in order to maximize tax efficiency and reduce the income tax liability of the recipient. While strategies like Roth conversions can be especially advantageous, careful planning is necessary from Global Payments individuals to ensure that they are in line with the overall goals of the estate.

For individuals leaving real estate or business holdings as bequests, the possible adjustments to inheritance tax limits may cause anxiety. The decedent's estate is responsible for paying estate taxes; the beneficiaries' intended use of the inherited assets has no bearing on these duties. Beneficiaries may be required to pay inheritance taxes in areas where they apply. The likelihood of a lower estate tax exemption threshold in 2026 emphasizes how crucial liquidity planning is for paying taxes and preventing the forced sale of inherited property.

Because the death benefit of a life insurance policy is included in the decedent's gross estate, life insurance is essential to estate planning. Nonetheless, irrevocable trust-owned life insurance policies are not included in the estate, providing a way to reduce the estate tax obligation. The ability to fund life insurance premiums through trust beneficiaries is made possible by the flexibility of yearly exclusion gifts, which facilitates tax optimization and strategic estate planning.

Because laws and each Global Payments individual circumstances change often, it is necessary to examine one's estate plan on a frequent basis. Every three to five years is the suggested period, though it may be sooner if there are significant life events. Updates to an estate plan may be necessary due to changes in legal regulations, family composition, net worth, or place of residence. For arranging an estate and being ready for legal consultations, tools such as the online Estate Planner® from Fidelity are a great resource.

In conclusion, managing the intricacies of estate planning necessitates being proactive and keeping up with the changing legal environment. Global Payments individuals may efficiently manage their estate planning efforts, guaranteeing their legacy is preserved and their successors are well-protected, by addressing important questions and taking strategic planning alternatives into consideration.

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Apart from the essential estate planning factors mentioned, it's crucial to acknowledge the influence of digital assets on estate planning. According to an AARP analysis from 2021, digital assets—such as social media profiles, online banking, and cryptocurrency—are becoming more and more important parts of contemporary estates. However, in conventional estate planning, these resources are frequently disregarded. Estate plans must contain specific procedures to guarantee that these assets are accounted for and handled in accordance with the beneficiaries' preferences. This emphasizes how important it is to include digital asset management in estate planning conversations in order to guarantee a thorough strategy for asset distribution and legacy preservation.

Getting around estate preparation is like getting ready for a long trip on a luxury ship. Estate planning requires careful attention to detail and foresight, just as you would meticulously plan your travel itinerary, choosing the right destinations (gift exemptions and estate taxes), making sure your luggage is appropriately tagged and organized for each leg of the trip (strategizing asset transfers and managing digital assets), and arranging for the most comfortable and efficient mode of transportation (using Roth conversions and comprehending life insurance implications). The changes that are coming in 2025 are like shifting tides, forcing everyone on board to review their navigational aids. Consulting with estate planning professionals guarantees that your legacy journey is fulfilling and in line with your ultimate goal, just as an experienced traveler seeks advice from a captain or cruise director to maximize their experience.