Nov. 13, 2017
With the possibility of major tax reform passing, you might be tempted to put off estate planning. That would be a mistake.
Whenever the government starts talking about making major changes to tax laws, many people decide to take a wait and see approach to estate planning.
This seems to make sense. Why get an estate plan, when the law might change soon and make the plans less than ideal?
It might be better to wait and see what happens and then make estate plans for the new law. There are problems with that line of thinking.
For one thing, it could take a long time for tax reform to pass, if it passes at all.
The current laws are still in effect. Therefore, if something happens to you now, it would be better to have a plan than not.
Instead of putting off estate planning, you just need to plan for uncertainty, as Financial Advisor discusses in "What Your Estate Planning Clients Should Do In Response to Trump's Tax Plan."
Estate planning for uncertainty means you need to create plans that are flexible. There need to be mechanisms in place to change those plans if the law changes.
For example, trusts need to have the ability to be reformed, if it is advantageous to do so because of changes in tax laws.
Do not let tax uncertainty stop you from estate planning.
Instead, schedule an appointment with an estate planning attorney and talk to the attorney about ways to create a plan that remains flexible.
Reference: Financial Advisor (Sep. 29, 2017) "What Your Estate Planning Clients Should Do In Response to Trump's Tax Plan."