One of the unintended consequences of the new federal tax law, is that it makes enormous tax savings possible for those willing and able to get creative with trust formation.
If you have read anything about the recently passed tax cuts President Trump signed, you have probably read that a few of the changes seem relatively simple. Under the new law, the estate tax exemption limit is doubled to $11 million for an individual and $22 million for a married couple.
The major complication is that the exemption limit is scheduled to return to previous levels in a few years. However, there are more complications to the changes than that, as Forbes discusses in "Trusts In The Age of Trump: Time To Re-Engineer Your Estate Plan."
When the new tax law is viewed in combination with some recently relaxed regulations on certain types of trusts, then it is possible to protect far more than the estate tax exemption amount from the estate tax. It requires a very carefully drafted dynastic trust. Similarly, there are many other examples of how the new tax law can be used in combination with the right types of trusts to save on other types of taxes as well.
The new law creates so many opportunities for creative trust formation, that it could usher in a new golden age of trusts. That would make this a good time for you to visit a Cincinnati estate planning attorney to see what you might be able to accomplish with a trust.
Remember: “An ounce of prevention is worth a pound of cure.” When making your estate plans or when probating an estate or administering a trust, do not go it alone. Be sure to engage a Cincinnati estate planning attorney.
For more information about estate planning, probate or trust administration in Cincinnati (and throughout the rest of Southwest Ohio) and to review free resources regarding estate planning, probate or trust administration, visit my website. If you have questions regarding this article or a particular legal matter, feel free to contact me at 513-399-PLAN (7526).
Reference: Forbes (Feb. 13, 2018) "Trusts In The Age of Trump: Time To Re-Engineer Your Estate Plan."