In this comment, Richard Ehrlich, Esq. addresses the issue of estate tax law based on the Tax Cuts and Jobs Act” (TCJA).
Ehrlich Law Center, Coral Springs, Florida (N/A:N/A)
CORAL SPRINGS, FLORIDA, UNITED STATES, September 11, 2018 /EINPresswire.com/ — In the second article of his series of Instructional Articles, Florida Attorney Richard Ehrlich comments on the issue of estate law tax pursuant to the Tax Cuts and Jobs Act (TCJA).
In brief, “The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a congressional revenue act originally introduced in Congress as the Tax Cuts and Jobs Act (TCJA), that amended the Internal Revenue Code of 1986. Major elements of the changes include reducing tax rates for businesses and individuals; a personal tax simplification by increasing the standard deduction and family tax credits, but eliminating personal exemptions and making it less beneficial to itemize deductions; limiting deductions for state and local income taxes (SALT) and property taxes; further limiting the mortgage interest deduction; reducing the alternative minimum tax for individuals and eliminating it for corporations; reducing the number of estates impacted by the estate tax …. For deaths occurring between 2018 and 2025, estates that exceed $11.2 million are subject to a 40% estate tax at time of death, increased from $5.6 million previously. For a married couple aggregating their exemptions, an estate exceeding $22.4 million are subject to a 40% estate tax at time of death …” (Wikipedia, https://en.wikipedia.org/wiki/Tax_Cuts_and_Jobs_Act_of_2017#Estate_tax, footnotes omitted)
In this comment, Richard Eugene Ehrlich addresses why major changes in tax law highlight the need for periodic review of existing estate plan with a competent qualified attorney.
The much publicized “Tax Cuts and Jobs Act” (TCJA), passed under the current administration, made some significant changes to Federal estate tax laws. While a thorough discussion of TCJA’s impact on Federal estate tax laws is beyond the scope of this article, one of the major changes is the temporary rise of the estate and gift tax exemptions to $11.2 million until 2025.
Many may look at the significant estate and gift tax exemption increase and think there is no need for future estate planning or think that estate plans already in place are now obsolete. While the major increase in the exemption amount would exempt all but the richest few from worrying about Federal estate or gift taxes, individuals should still seek out the services of a qualified attorney to review their existing estate plans.
Mr. Ehrlich explains: “A prudent planner may review several aspects of an existing estate plan to ensure that all affairs are in order. For example, a will or a living trust may have been drafted years or even decades ago. Depending on when the estate plan was created, then applicable estate and gift tax exemption may have been as low as a million dollars per individual.”
Some estate plans may distribute assets to the heirs using a formula or give certain amount to grandchildren up to the exemption amount set by law. While the particular choice of planning languages may have been of little consequence at the time of drafting, whenever there is a major change in the law, the existing language may suddenly drastically change the outcome of the estate plan. Therefore, a prudent planner will review the language of the estate planning documents to ensure that the potential outcome reflects the wishes of the client.
In addition to changes in Federal law, there may be changes in IRS regulations, state law, or court precedent that can all result in significant changes to the legal landscape compared to when the estate plan was set up. Furthermore, clients and their family may undergo significant changes in their lives and circumstances that may necessitate a change to existing estate plans. The best way to keep your estate plan current is to have them periodically reviewed by a qualified estate planning attorney.
The full instructional article is published on the Blog of Mr. Ehrlich at https://RichardEhrlichBlog.blogspot.com
About Richard Ehrlich, Attorney at Law
Richard Ehrlich received his Juris Doctor from the Washington University in St. Louis School of Law. Before attending law school, he attended the University of Chicago and received his B.A. in Political Science. Richard also completed the proper training to be a Certified Financial Planner at New York University. He is a member of the following Bar Associations: Florida, New York, and New Jersey.
His profile at “Lawyers of Distinction” is https://www.thelawyersofdistinction.com/profile/richard-ehrlich-9555/
His LinkedIn profile is at https://www.linkedin.com/in/richard-ehrlich-777b513/
His blog is at http://richardehrlichblog.blogspot.com/
Richard Ehrlich, Attorney in Florida
Ehrlich Law Center
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