The New York landscape for older adults may greatly change under a Trump administration. We will continue to examine the various policies as proposed during the campaign and as they unfold in his presidency.
President-Elect Trump has proposed the elimination of the Estate Tax at the federal level. While this may sound like a boon for the wealthy, keep in mind a couple of things:
♦ Estate tax repeal may be a campaign promise that falls by the wayside.
♦ New York State may still have an estate tax (currently for estates valued at $4,187,500 or larger) regardless of federal action.
♦ A change in the control of Congress may give rise to the reinstatement of an estate tax.
♦ A change in administration in future years may give rise to the reinstatement of an estate tax. Any enacted legislation may not be permanent.
What You Should Do
Now is the time to revisit your estate plan, or create one if you have yet to do your planning. Make sure your legal documents are flexible so that your plan can change with the changing tax laws. Your will and trusts may need to be revised to accommodate the increases and/or decreases in the estate tax exemption amount.
Be sure to:
♦ Review your Last Will and Testament.
♦ Review your Credit Shelter Trusts and revise the funding formula or create disclaimer trusts to change with the changing tax laws.
♦ Organize your records so that the cost basis of your assets is easily calculable.
♦ Consider including a provision in your estate planning documents that gives your Trustees or Executors the ability to allocate your increase in tax basis.
Click here to learn more about estate planning.
As always, contact us if you have any questions. Our Estate Planning attorneys are always available to ensure you are taking appropriate steps to protect your wealth and your family.
Call us at 631.390.5000 or click here.