The doubling of the estate tax exemption limits recently signed into law, has important implications for many estate plans. It is a good idea to consider what you might want to do as a result.
Many people had hoped that President Trump's tax reform bill would lead to the end of the estate tax. That proved to be too expensive for the government to include in the bill. However, the estate tax exemption limits were doubled.
While that is not as good as many wealthy families had hoped, it is still a benefit for some wealthy people. There are some things to think through before changing your estate plan as a result of the new law, as Forbes discussed in "What the Wealthy Should Consider Because Of The Higher Estate Tax Exemption Levels."
The first thing to consider is that you might not want to do anything.
Many experts believe the exemption levels will revert to their previous level in the future. Younger and healthier people might not want to change their plans now, if they anticipate that they will just need to be changed again in the near future.
That could be a waste of time and money.
Other people will want to see their estate planning attorneys. If you have included expensive and complicated ways to account for the estate tax in your estate plan, they may no longer be necessary, and your estate plan can be simplified.
People who pay expensive life insurance premiums to help their estates pay for the estate tax, might consider whether they still want to pay those premiums. There may be ways to sell unneeded policies for cash.
For more information about estate planning in Orlando, FL (and throughout the rest of Central Florida), visit our estate planning website and be sure to subscribe to our complimentary estate planning e-newsletter while you are there.
Reference: Forbes (Jan. 15, 2018) "What the Wealthy Should Consider Because Of The Higher Estate Tax Exemption Levels."