The wise use of trusts may create some real tax savings under new tax laws.
New laws double the estate tax exemption limit to $11 million for an individual and $22 million for a married couple. However, a major complication looms out there because the exemption limit is scheduled to revert back to previous levels in a few years. That’s just the beginning of the changes, according to Forbes in “Trusts In The Age of Trump: Time To Re-Engineer Your Estate Plan.”
When the new tax law is viewed in combination with some recently relaxed regulations on certain types of trusts, then it is possible to protect far more than the estate tax exemption amount from the estate tax. It requires a very carefully drafted dynastic trust. Similarly, there are many other examples of how the new tax law can be used in combination with the right types of trusts to save on other types of taxes as well.
An estate planning attorney can advise you on creating an estate plan that meets your unique circumstances and may include the use of trusts to meet the changes of the new tax laws.