Shifting gears: Tax law changes turn estate planning on its head
Abstract: Recent tax law changes demand new approaches to estate planning. Given the increased estate tax exemption and lower tax rate, traditional strategies, which focus on minimizing estate taxes, may no longer be relevant. In fact, they may result in unnecessary income taxes. This article explains the advantages and disadvantages of keeping assets in one’s estate, noting that an estate defective trust might provide the best of both worlds. A sidebar looks at higher taxes that now exist for top earners.