The start of the year is an ideal time to revisit an existing estate plan or to create a brand new one. After all, with a new president often comes new policies. There are a couple of issues that may be worth paying attention to this spring in the area of estate planning in Texas.
With Donald Trump assuming the position of president of the United States this year, there has been a lot of discussion regarding getting rid of the demise tax. President Trump has a plan that calls for repealing the existing estate tax as well as the capital gains tax on assets in an estate that exceed $10 million. The plan does call for an exemption for small businesses and family farms.
There has also been some discussion on whether the tax on capital gains would be payable at the time of the property owner's death or at the time the inheritor sells the asset received. Either way, this would result in a top-tax rate change from 40 percent (estate tax) to 20 percent (tax on capital gains). This would be a huge reduction for families and individuals whom the change impacts.
Creating an estate plan can seem like a morbid task to some and be overwhelming to others depending on the amount of assets they have. However, not creating an estate plan means that assets will end up in unintended hands in the future. A knowledgeable attorney in the state of Texas can provide guidance during the multifaceted estate planning process.
Source: thinkadvisor.com, "The New Era of Estate Planning", Nancy Hermann, Feb. 27, 2017