How Do New Tax Exemption Limits Change Your Estate Plan?

The new tax laws may be a benefit to wealthy people but the changes should be studied closely, according to Forbes in “What the Wealthy Should Consider Because Of The Higher Estate Tax Exemption Levels.”

The first thing to consider is that you might not want to do anything.

Many experts believe the exemption levels will revert to their previous level in the future. Younger and healthier people might not want to change their plans now, if they anticipate that they will just need to be changed again in the near future.

That could be a waste of time and money.

Other people will want to see their estate planning attorneys. If you have included expensive and complicated ways to account for the estate tax in your estate plan, they may no longer be necessary and your estate plan can be simplified.

People who pay expensive life insurance premiums to help their estates pay for the estate tax, might consider whether they still want to pay those premiums.

An estate planning attorney can advise you in reviewing your estate plan in relationship to the new tax laws.

Reference: Forbes (Jan. 15, 2018) “What the Wealthy Should Consider Because Of The Higher Estate Tax Exemption Levels.”