The simple answer is “NO”.
Waiting To Review Your Estate Plan And Estate Needs Creates Unnecessary Risks
Forbes® magazine reports that the Trump administration’s estate tax proposals and executive orders introduce potential changes and uncertainty into estate planning. The shift in the administration’s priorities, they believe, could change how Americans approach wealth transfer and asset management.
Among the items under consideration, for example, are a proposed Estate Tax Repeal, changing the death tax structure by making the current high federal estate tax exemptions permanent or by eliminating federal estate tax altogether. But this would not change the state-level Estate taxes which have almost always been significantly lower than the federal tax rate.
Another possible change may be to adjust the capital gains tax treatment. For Estate Planning purposes this could significantly affect the way that inherited assets are taxed.
Could the “step-up” basis rule for inherited assets to the date of death value be eliminated? Could there be a capital gains tax assessed on inherited assets as if they had been sold at the date of the family member’s death, resulting in immediate tax liabilities for heirs even if the asset was held by them? Of course. The types of changes to the legal and tax structure are without limit.
Could there be a significant shift in Estate Planning approaches in the years to come, as Forbes® suggests? Yes.
Without doubt, the trust or other planning tools currently used to plan for property transfers and estate taxes may have to be changed, and new and different approaches may have to be devised.
The fact is, Americans at all income levels have had to consider the potential for change, and revise their plans as changes have been made, during the past 50 years or more. Change is usually not scary (unpleasant maybe, but not terrifying), but it affects us all because it engenders anxiety and creates indecision.
The Steps To Take Now?
Plan And Review.
Continue to make good decisions about reviewing your current Will, Living Trust and other planning tools.
Continue to focus on your needs, now and as expected in the future. And discuss with your Attorney the need to protect your children and grandchildren.
Focus On Flexibility.
No matter what tools you use, be sure that there is the opportunity to plan for and implement change. Whether modifications need to be quickly accomplished or adapted over time as your financial and personal picture changes, your Attorney can help you to be ready.
For example, your Trust needs to have provisions capable of being tweaked without significant time or expense. Your planning needs to include thoughtful creation of Powers of Attorney, not only to address important health care issues and end of life directions, but also to plan for the possibility that your Agent under the financial POA can make adjustments in order to address substantial changes in estate and other tax and transfer strategies.
What’s The Point?
The point is: Don’t just do nothing.
Review. Plan. Implement. And stay flexible. 2025 and subsequent years will be a challenging and concerning period for everyone. No income level or family situation will likely be left unaffected in some way.
How To Start A Conversation?
Your Estate Planning Attorney is an important partner in this process. Reach out to Attorney Marc Sherman and Attorney Maureen Meersman to set up an appointment: Click Here For Sherman & Meersman Contact Info
