The new tax cuts were passed so quickly and with so little debate, that it is not yet clear to experts. However, there are a few things that are clear enough that people can plan to take advantage of them.
The tax reform bill that President Trump recently signed into law creates some winners and losers. It is not yet certain who exactly all the winners and losers are, since experts are still trying to come to terms with how all of the changes to the tax code will work together.
The law was passed without much debate and with enough last-minute changes that it will take some time for people to understand all of the implications. Nevertheless, it is clear there are some provisions that could have a major impact on many people’s estate plans, as the Wills, Trusts & Estates Prof Blog explains in “New Rules, New Opportunities: What Financial Advisors Need to Know About the Tax Cuts and Jobs Act.”
One such provision is the doubling of the federal estate tax exemption.
This creates new opportunities for dynastic trusts. It could also impact what some people might have done with their current estate plans, and they might want to revisit those plans.
Changes were also made to the state and local tax deduction. In states with high taxes, many people are going to want to get trusts to limit their tax liability.
Just because not everything is certain about the income tax effects of the new tax laws, does not mean that you should wait to change your estate plan.
Get in to see an estate planning attorney, so your plan can be reviewed and revised as necessary.