The results of the 2016 Election have been surprising to say the least. Most experts were expecting a very different result, and it has caught the professional planning community off guard. Up until early November, estate planners expected a certain set of tax rules to stay in place. Interestingly enough, among the possible Budget proposals expected for 2017 include wholesale replacements of those exact tax rules. Specifically, we are expecting a repeal of the Estate Tax and a substantial change to how Capital Gains tax is affected by the property owner's death. This means an estate plan put in place to prevent unnecessary taxes under the current rules may need a revision in the next few years.
However, not everything needs to be thrown out with the bath water. After the big changes to tax law in 2013, our firm started using a flexible tax planning technique which we call the A/C/B trust. Our clients who obtained a tax planning trust in the past few years are likely okay for now. If you are a married couple with a Trust, we would be happy to take a look and let you know what type of Trust you have.
We will keep our ear to the ground on this subject to ensure we offer the most up-to-date planning available. Check back and we will have a new blog post in early 2017 after the dust settles a little more.