The tax reform law recently approved without much debate and with enough last minute changes that it will take some time for people to understand all of the implications, includes some provisions that could have a big impact on many estate plans, according to the Wills, Trusts & Estates Prof Blog in "New Rules, New Opportunities: What Financial Advisors Need to Know About the Tax Cuts and Jobs Act."
One such provision is the doubling of the federal estate tax exemption.
This creates new opportunities for dynastic trusts. It could also impact what some people might have done with their current estate plans, and they might want to revisit those plans.
Changes were also made to the state and local tax deduction. In states with high taxes, many people are going to want to get trusts to limit their tax liability.
Just because not everything is certain about the income tax effects of the new tax laws, does not mean that you should wait to change your estate plan.
A Cincinnati estate planning attorney can advise you on creating an estate plan that meets your unique circumstances, as well as taking the new tax laws into consideration.
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: Wills, Trusts & Estates Prof Blog (Dec. 26, 2017) "New Rules, New Opportunities: What Financial Advisors Need to Know About the Tax Cuts and Jobs Act."