Tuesday, December 26, 2017
The increase in the estate tax exemption threshold renders some trusts obsolete. For those planning in the late ‘90s, when the exemption limits were significantly lower, shielding assets in a trust was an excellent planning decision. But now, with the exemption limit for couples at $22.4 million, these planning vehicles are unnecessary for many who previously benefited from their application. If a trust is part of your current estate plan and is now unwarranted, it is important to clear that language out as soon as possible.
See George, A Gift from the New Tax Act: Kill That Trust, Fox & Mattson, P.C., December 22, 2017.