The tax law finally passed. However, many questions remain up in the air.
The estate tax exemption was doubled under the new tax law. However, it was not made permanent. The exemption is scheduled to revert back to its previous level in 2026 creating a potential issue, according to Wealth Management in “Clawback Under New Tax Law.”
The issue is what to do if someone in 2018 uses the doubled exemption to make gifts and uses up their lifetime exemption under the current law, but then passes away after the exemption limits have reverted to previous levels.
The exemption limit to use for the estate is unknown. It is possible that gift amounts over the exemption limit in place at the time the person passes away, could be clawed back into the estate for estate tax purposes.
Instead of deciding how to handle this issue, Congress has authorized the IRS to decide what to do.
An estate planning attorney can advise you on creating an estate plan that fits your unique circumstances and takes the present political climate into consideration.
Do You Need To Speak With An Attorney About Estate Planning?
If you need to speak with an experienced estate planning lawyer please contact us online or call us directly at 800.756.5596 to first register for one of our free, informative seminars. Your attendance will qualify you for a special discount for our estate planning services should you decide to make a free appointment at the conclusion of the seminar and choose to proceed with us. We proudly serve clients throughout California with offices in Torrance, Newport Beach, Orange, Woodland Hills and Pasadena.
