Strategic estate planning is one of the most important roles of an expert financial advisor. With rules and regulations changing often, it is important to keep up-to-date on both federal and state exemptions.
New Federal Tax Law Impacting Heirs is on the Horizon
Are you familiar with the significant estate and gift tax exemption changes in the Tax Cuts and Jobs Act (TCJA) of 2017 ? When it was enacted, it made substantial changes allowing lifetime estate and gift tax exemption for individuals to shield $11.18 million of the value of an estate up from $5.6 million and couples could protect $22.36 million up from $11.18 million, nearly double. Currently, the exemption stands at $12.92 million per person and $25.84 million for a married couple. But these were temporary changes.
After 2025, the 2017 TCJA will sunset certain tax laws that may affect how you plan your future estates. It will be imperative that you begin to take the steps for proper planning and estate administration before this takes place as these changes may cause you to redraft some important documents, including wills and trusts. For more information about these changes and the steps you can take to prepare, check out a new article in Financial Advisor Magazine written by Kevin O’Regan, Senior Wealth Advisor, who outlines how this new law will affect wealthy clients. Kevin O’Regan is an East Coast based senior wealth advisor at Kayne Anderson Rudnick with more than 16 years of industry experience.
The information provided here should not be considered legal or tax advice and all investors should consult their legal and/or tax professional about the specifics of their own legal and tax situation to determine any proper course of action for them. KAR does not provide legal or tax advice and nothing herein should be construed as legal or tax advice, and information presented here may not be true or applicable for all legal and income tax situations. Tax laws can and frequently do change, and KAR does not undertake to update this should any changes occur.
