July 7—By drastically increasing the federal estate and gift tax exemption, the 2017 Tax Cuts and Jobs Act created a significant estate tax mitigation opportunity for high-net-worth individuals and families. The question now is: Have already strong estate tax mitigation opportunities become even more powerful in the pandemic? National Director of Wealth Strategies Blair Talty discusses how these strategies have indeed been strengthened during COVID-19.
Help clients take a long-term view to protect family wealth during divorce.Divorce can derail family wealth and affect generations far beyond just one couple.Even those who are not divorcing or contemplating divorce—including those beginning prenuptial planning—could benefit from knowing what’s at stake in the event of a divorce, be it their own or that of a business partner, parent, sibling, or descendent.
Learn about the tax treatment of alimony in a divorce and other considerations. The 2017 tax act changed the tax treatment of alimony for both the payer and the recipient.For divorces finalized prior to January 1, 2019, this new tax treatment does not apply and is grandfathered under the rules of the prior law.It is important to review your settlement agreement in light of today’s current tax laws, and consider modification of an existing agreement if appropriate.
Seize the opportunity to make the most of your estate plan. As with any change in tax legislation, the Tax Cuts and Jobs Act of 2017 gives rise to valuable estate planning opportunities.The new tax law serves as a good reminder to review your estate plan to be sure that it is consistent with your current goals and is flexible to promote tax efficiency under today’s tax laws.
The decision whether and how to best transition out of your business is seldom easy. Several key factors may include: (i) financial needs moving forward for you and your family; (ii) your desire to remain involved in the business in some capacity; (iii) the involvement of business partners and/or family members; (iv) the impact of income and/or estate taxes; and (v) market conditions.