Trump Tax Changes Implications
The recent proposed Trump tax changes have grand implications for estate planning. For starters, the proposed tax reform would eliminate the Estate Tax of 40% for estates with values greater than $5.5 million. This affects less than 1% of the total US population. However, the proposal also reduces the corporate tax from 35% to 20%, including closely held small businesses. This could potentially become a very large tax savings to many small business owners.
So what should you do now? Continue with making your current estate plans. Why? Because we can not plan today for potential tax and market forces that might occur in the future. What can my estate planning attorney do now though? When we create estate plans, we include a provision called a Trust Protector. The Trust Protector's job is to have the ability to alter a trust if the tax code changes. This allows my clients estate plan to remain up to date, without incurring the cost of redoing the entire estate plan whenever there is a change of circumstance.