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.

Current tax law environment
Under the current tax law, the top federal, estate, gift, and generation-skipping transfer (GST) tax rate is forty percent, with the federal exemption amount at $11.58 million per person, as indexed for inflation. The increase in the federal exemption provides a golden opportunity for high-net-worth individuals to enhance their estate plans and preserve more wealth for their heirs. It’s important to work with your advisors now to determine how today’s tax laws impact your own situation, and to take advantage of estate tax planning opportunities now that could help mitigate the negative effects of federal estate, gift, and GST taxes on your estate. Many of the provisions of the current tax law are scheduled to sunset after December 31, 2025, at which time the prior provisions of the tax law would return if no further legislative action is taken. Further, given the nature of politics and fiscal realities, there always exists a very real possibility that the estate tax law will be modified prior to 2025.

This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought.  

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that, while this publication is not intended to provide tax advice, in the event that any information contained in this publication is construed to be tax advice, the information was not intended or written to be used, and cannot be used, for the purpose of (i) avoiding tax related penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any matters addressed herein.

 

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