You’ve probably heard many stories on the news and elsewhere about the latest tax proposal from the Trump Administration.
With so many potential changes in the legal landscape (ranging from this recent tax framework to the work on “repealing and replacing” Obamacare), you might be tempted to think that a wait-and-see approach is the best option when it comes to thinking about updating your estate plan.
Nothing could be further from the truth! The real reasons for estate planning are as relevant as ever. Although the possibility of reducing or eliminating death taxes is important, it’s worth remembering that no court, legislative body, US President, or bureaucracy can stamp out irresponsible youth wasting their inheritance, divorcing spouses attempting to take advantage of family wealth, family discord that can tear your family apart, lawsuits that threaten your family’s inheritance, or taxes altogether. Even though the tax rate, deductions, credits, and other aspects of taxation will undoubtedly change over time (as they have throughout the years), we’ll always have some kind of tax around. I’ve yet to see a proposal that eliminates all taxes. As a result, your plan may need to be updated to include modern flexibility tools (like trust protectors or broad “decanting” powers) so it can bend, but not break regardless of what Congress and the President throw our way.
We’ll develop new, flexible legal strategies for maximizing tax savings as the tax laws change. As our client, you’ll be among the first to know about these opportunities as they develop, but resolving the other pressing estate planning issues you and your family face must be done regardless of what’s happening in Washington.
- How will a four-year-old grandchild approach money when she’s older? Will she be responsible? Will she end up with special needs?
- Will a child or grandchild marry someone who wants to take advantage of family wealth?
- Will Alzheimer’s or another cognitive impairment affect you or someone else in your family?