The new tax bill could affect your estate plan. So, it’s probably a good idea to speak with your local lawyer in Tampa about any changes to your plans. You will want your lawyer in Tampa to look over your estate plan closely in order to make sure your will is carried out as you intended.
Sit down with your lawyer in Tampa and check over some important things to consider with the new tax bill and your estate plan.
Estate and Gift Tax Exemption
Under the new tax bill, the estate and gift tax exemption amount will be increased. Currently the amount is around $5.6 million but it will be $11.2 million in 2018. This means a married couple can transfer $22.4 million without paying any estate or gift tax. But this exemption will sunset in 2025. That means it will revert back to the $5 million amount in 2026. This will then only pertain to individuals dying between 2018 to 2025.
Transfer of Wealth
However, the gift tax exemption will provide a 7 year window to transfer large amounts of wealth. Therefore, younger generations can receive these assets with no tax impact. But, again this will sunset on that 2025 deadline. So this may change how you want to structure your estate plan.
Basis Adjustment Rules
Under the new lax, the basis adjustment rules continue over from previous existing rules. This means that all assets given by a decedent still receive a new basis equal to the fair market value. This allows, for example, a surviving spouse to sell their home and pay minimal to zero estate tax or capital gains tax.
These changes to the estate and gift tax are actually pretty significant. Therefore, it is pretty important to have your lawyer go over your estate plan. Make sure the new tax bill doesn’t change your intended wishes. For example, you may need to go back and change your estate plan according to the new $11.2 million exemption in order to leave your spouse with more assets. It is also a good idea to revise your estate plan if you wish to benefit from tax savings with the estate and the capital gains tax.