Double Down Now with Estate Planning

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Post authored by
Jim Rein

Jim Rein

Jim Rein designs sophisticated estate plans for independent, forward-thinking business owners who seek to transform what they've built into a legacy that lives on. Whether their focus lies in farming, ranching, equipment manufacturing, healthcare, or commercial real estate, Jim draws on his 19 years of experience to proactively devise the best scenarios for achieving people's goals for the preservation and distribution of their wealth.
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New Tax Act Fortifies Estate and Legacy Opportunities

The time to ‘double down’ with an estate plan is now.

Transferring assets to a trust or other entity is usually loaded with potential tax consequences to consider. This may be a rare opportunity to transfer a high value of assets without incurring any tax, and provide protection of those assets from estate tax in the future. Without a multitude of tax challenges to contend with, now is quite possibly the easiest time to enact an estate plan.

Under the new tax provisions, the estate and gift tax exemption has been doubled (an exemption for an individual is at $11.18 million in 2018, and $22.36 million for married couples in 2018).

Basically, the law is setting the bar for you and your spouse to either give away during a lifetime, or die owning, assets worth a combined $22.36 million and owe zero federal estate or gift tax.

Tick-Tock, Exemptions are Up Against the Clock

The catch? While it’s not exactly a catch, it does feel a bit like Cinderella before the clock strikes Midnight. On January 1, 2026 (eight years from now), the increase in the federal estate tax exemption under this law will sunset (reverts back to 2017 law). Additionally, there is always a possibility of a tax law change before this time (under a new Administration, for example).

This creates a “use it, lose it, or die with it” situation. It’s a unique opportunity to use what has been given for a short period of time. Double down on these tax advantages while you can.

K·Coe Isom is ingrained in the intricacies of strategic estate planning and gifting in conjunction with building historic legacies. Contact us today to establish an advantageous estate plan for your business and family.

 

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