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 Cincinnati 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.
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 (Jan. 15, 2018) "What the Wealthy Should Consider Because Of The Higher Estate Tax Exemption Levels."