Don’t Wait for Tax Reform Before Creating Estate Plan

It could be a long time before tax reform passes and it may never happen.

Instead of putting off estate planning, it might be wise to plan for the uncertainty of the proposed tax reform, according to the Financial Advisor in “What Your Estate Planning Clients Should Do In Response to Trump’s Tax Plan.”

Some people think it might be better to wait and see what happens with tax reform and the estate tax, before making estate plans for the new law. However, there are problems with that line of thinking.

It could take a long time for tax reform to pass, if it does at all.

The current laws are still in effect.  Therefore, if something happens to you now, it would be better to have a plan than to not have a plan at all.

Estate planning for “uncertainty”, means you need to create plans that are flexible. There needs to be mechanisms in place to change those plans, if the law changes.

For example, trusts need to have the ability to be reformed, if it is advantageous to do so because of changes in tax laws.

Do not let tax uncertainty stop you from estate planning.

An estate planning attorney can advise you on creating an estate plan that meets your unique circumstances and recommend ways to make the plan flexible, in the event of a change in laws.

Reference: Financial Advisor (Sep. 29, 2017) “What Your Estate Planning Clients Should Do In Response to Trump’s Tax Plan.”