Wednesday, February 19, 2014
As I have previously discussed, panelists at the recent 48th Annual Heckerling Institute on Estate Planning discussed how recent tax legislation is affecting and creating new considerations for estate planning. The American Taxpayer Relief Act of 2012 has added tax concerns to considerations to be contemplated by estate planners. One concern expressed was that estate planning is now more complicated, and each client’s case must be looked at and analyzed individually. A main point made at the conference was that a broad approach must be replaced by a more client specific approach.
The presentation by Paul S. Lee discussed how changes to the federal exclusion amounts will affect estate planning. Lee focused on making decisions based on how to effectively benefit from the step-up in basis, and comparing the effects of income and estate taxes. Other presenters addressed the issue of portability. Presenters stressed the point that considering the use of credit shelter trusts should not be replaced by solely relying on portability.
See Kevin Matz, The Estate Planning World Has Been Turned Upside Down by ATRA, WealthManagement.com, Feb. 12, 2014.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.