Ever since the passing of the Tax Cuts and Jobs Act of 2017 (Trump’s Tax Bill), we have fielded several phone calls from concerned clients of ours, as well as those who have yet to become clients, with the question of whether or not the tax law changes affect their estate planning.
Well, let me answer that question … no, not really.
The estate tax (or death tax as many call this tax), is a tax that is assessed based upon the gross amount of assets held by a person at death. However, over the last decade we have seen this tax law change from a small exemption of $600,000 up to an exemption of $5.49 million.
With the passage of the Tax Cuts and Jobs Act of 2017, the exemption has changed to $11.2 million, or $22.4 million for married couples. Before the Tax Cuts and Jobs Act, less than 1% of Americans faced the possibility of an estate tax, and now it is even less so.
This is why we say that the tax law changes do not really affect estate planning. However, there are a number of other reasons to engage in comprehensive estate planning outside of estate tax planning including:
- Naming Temporary and Permanent Guardians For Your Minor Children to Avoid their Temporary Admission to Foster Care
- Blended Families: What You Must Do To Avoid Disinheriting Each Other or Your Separate Children
- Most Inheritances Are Spent within 17 Months. Options You Have to Preserve Your Children’s Inheritance
- How to Protect Your Children’s Inheritance from Divorce, Creditors, Lawsuits, and Irresponsible Behavior
- How to Protect Your Children Against a Bad Spouse, and Family Money Going Out of Your Bloodline
- How to Avoid Potential Lengthy Delays of Probate, Exposing Your Personal Financial Assets to the Public, and How to Eliminate or Minimize Court, Attorney, and Executor Fees
- Income Tax Planning and The Ugly Truth on What Happens When You Put Your Kids Name on the Title to Your Home
- The Danger of Joint Accounts and What Many Families Do Not Realize Until It’s Too Late
Plus, Much More!
Remember, proper estate planning and family protection planning is not just about avoid taxes but preserving a family legacy that will continue for generations to come.
If you would like to get started, schedule a time to meet with your Nashville, Tennessee Estate Planning Attorney to discuss your options and what estate planning options might be best for you and your family.
Call Daniel A. Perry today at (615) 490-0477 to begin the process or protecting your loved ones and your family today!