The Tax Cuts and Jobs Act still has significant impact on the process of estate planning. This means that many estate planning attorneys have had to adapt and re-strategize the best way for clients to take advantage of these federal gift tax and estate exemptions.
One-third of respondents in the recent TD Wealth study identified that clients have benefitted from creating trusts to protect assets. Other estate planning lawyers have pursued options like minimizing future capital gains tax consequences and making gifts. All of these strategies can be accomplished by using tools such as trusts.
Rather than giving a child an outright bequest or gift, many are parents are instead choosing to use a trust as a way to protect assets from what could be future claims in a divorce. This asset protection planning strategy also has benefits from protecting the items placed inside a trust, when properly funded, from being attacked by creditors who file lawsuits.
Estate planning looks not just at the impact of state and federal taxes, but also at how you will pass down your legacy. Many tools are available to you to help accomplish your individual estate planning goals- talk to an attorney to learn more.
Many people making use of an estate planning attorney’s services still benefit from asset protection planning strategies and estate planning strategies that allow for meaningful gifts named to beneficiaries without compromising privacy, safety and security.