Page 11 - Best Chapter Spring 2017

The tax cuts are purported to be revenue neutral by reducing . ' ~ '
or eliminating some deductions and loopholes, repatriating g '
corporate cash being currently held overseas and eliminating
corporate and special interests loopholes. n . 3
Under the current estate tax law an individual may pass up ‘w _\ i i I I i I
to $5,490,000 free of federal estate tax. That means that ' “* 1: - ', .' " :3.
a husband and wife may pass up to almost $11,000,000 - , "‘ ' - o 0 0 0
without paying any estate taxes. Amounts in excess of - ” A . . . L’...
$11,000,000 are taxed at a rate of 40%. Obviously this . I ' ' 0 0 0
impacts very few people, but those that it does aflect have ‘ I '
historically needed to do significant planning to avoid the
estate tax. V I
Part of President Donald Trump’s tax platform is a repeal IV
of the federal estate tax. For most Americans, with an
exemption amount of $5,490,000 the federal estate tax has
eflectively been repealed for years. Although Republicans
control the House, Senate and the White House, the lack of Contact James Singler for
60 seats in the Senate means that any legislation repealing an appointment or to set up 0
the federal estate tax is likely to be filibustered. Repeal - I - ~
legislation could be passed with a simple majority as part Speclo presentation on f '5 topic

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of the budget reconciliation process, but such legislation is 5 0 e C‘
likely to contain a ten year sunset provision. This means that CC|”:ee, Halter 8‘ Gr|$W0|d,
the estate tax would be re-instated after a ten year period. He can be reached at
Even if repeal happens, it is likely that the gift tax will or by emu” of
remain in place. If the generation skipping tax is repealed, jsin |er_@cO|Fee com
this could ofier significant planning opportunities for g ' '
wealthy families.
At least as to estate tax reform, for 99% of us, none of
this matters. Whether repeal happens or not there are
still important reasons to establish revocable living trusts- C A L F E E
probate avoidance, control of assets, protection of assets
from second marriages, asset protection and income tax
planning, among other reasons. The estate tax issue is
just one piece of the puzzle that should be addressed in
establishing a comprehensive estate plan.