With the new tax bill that just passed, many people are wondering how all the nuts and bolts included are going to affect them. We're guessing it's going to take the whole of 2018 to really figure that out, so let's just focus on one piece of the puzzle: estate planning.
For better or for worse, the new tax bill really only makes one change to the field of estate planning. This is in the area of the Federal estate, gift and generation-skipping transfer (“GST”) tax exemption. Under the new law, exemption amounts double from $5 million to $10 million per individual and combined $22 million for married couples. These amounts adjust for inflation and revert back to $5 million in 2025 unless extended.
Now we know many of our readers fall into the category of people who will benefit from this change. JUST KIDDING! I doubt we even KNOW anyone that will help, so the reality is that there's not much new in 2018 for estate planning.
However, there will be plenty coming down the pipe for you as we understand this huge tax code change. While you may not be impacted by the changes to the estate tax exemption, you'll most likely see some impact from the overall code changes.
What can you do? As always, we recommend planning. If you have an estate plan already, be sure to schedule a visit with us or your estate planning attorney. They'll be able to tell you if you need to make updates or changes to your existing plan. If you DON'T have a plan in place, now is the time. We won't know the full story on the tax bill for years, but that just makes it more imperative you plan now. Give us a call today and we'll help you figure out your next steps.