Be sure your plan meets today’s goals and is flexible for future change. As with any change in tax legislation, the Tax Cuts and Jobs Act of 2017 gave rise to valuable planning opportunities.Tax law changes serve 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.Many of the provisions of the current tax law are scheduled to sunset after December 31, 2025.
Learn about the new tax treatment of alimony and other considerations. The new tax act changes the tax treatment of alimony for both the payer and the recipient.For divorces finalized prior to January 1, 2019, this new tax treatment will not apply and will be grandfathered under the rules of the prior law.It is important to review your settlement agreement in light of these tax law changes, and consider modification of an existing agreement if appropriate.
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.