You are likely to read a lot in the next few months about how you need to change your estate plan to adapt to the recently adopted tax cuts. While that is true, be cautious since much of the specific advice might be wrong for your estate.
Whenever a major piece of tax legislation passes, many experts begin talking about what the new law means for estate planning and how estate plans should adapt to it. That appears to be happening with the recent tax cuts that President Trump signed into law.
It is important to adapt your estate plan for the new laws. However, much of the expert advice may lead you down the wrong path.
The advice that you read will not take into account the specific circumstances of your family and estate.
A good estate plan does not work in a vacuum, but avoids generalizations about tax laws and creates a unique plan that will work for your family, as Financial Planning points out in “Avoid ‘dangerous’ planning generalizations after new tax law.”
One of the more important things to keep in mind is that public opinion polls suggest that the tax cuts are unpopular. If they remain so, then it is possible that in 2020 things could easily swing back the other way.
The tax cuts could be reversed and there might even be tax increases.
Therefore, you might want to be cautious in making too many sweeping changes to your estate plan, especially if they are irreversible. In adapting your estate plan for the new laws, make sure that you go to an estate planning attorney who can create a cautious plan tailored to your unique circumstances.
Reference: Financial Planning (Jan. 3, 2018) “Avoid ‘dangerous’ planning generalizations after new tax law.”