April 09, 2018

Estate Planning After the Tax Cuts and Jobs Act

family in estate planning session

 

The new tax laws increased the estate, gift, and generation-skipping transfer (GST) exemptions to $11.2 million in 2018.  The annual gift exclusion has been increased to $15,000 in 2018.

It is still very important to plan even with the new tax laws.  The tax laws related to estate planning automatically expire after 2025.  Also, many states have estate taxes as well.  While California currently does not have an estate or inheritance tax, that could change in the future.  Even if there is no estate tax, your estate could be subject to probate which is a long and expensive process.  Finally, with the rise of financial elder abuse, it is important to have an estate plan in place while you are still able to have one prepared and eventually implemented.

The Tax Cuts and Jobs Act did not make changes to some of the following:

  • Step-up in basis of appreciated assets at death
  • Grantor retained annuity trusts (GRATs)
  • Qualified Personal Residence Trusts (QPRTs)
  • Charitable Trusts
  • Crummey Trusts
  • Lack of Control or Marketability Discounts

The preceding list is not exclusive.

If you have questions about any of this, it is important to speak with an estate planning lawyer who understands the tax laws.

Christina Weed has an LL.M. in Taxation, and assists clients with their estate planning and tax questions.

Mendes Weed, LLP is here to help you if you have any questions.  (925) 390-3222.

The tips and materials provided on this page are for informational purposes only, offered as public service. No information on this website should be considered legal advice or used as a substitute for legal advice. For legal advice, you should contact an attorney directly.