Estate administration and tax implications from recent tax reforms are extremely important matters. Now that the end-of-year holidays are behind us tax season is in full swing. As you may know, 2018 is the first year in which the full effects of recent tax reforms apply. This has some experts predicting that issues related to tax returns and tax refunds will be complicated this year.
Generally speaking, Florida has long enjoyed a tax climate that is more favorable than many other states. Recent tax reforms have made the state even more attractive from a tax liability standpoint. Many legal observers note that those tax reforms will allow the transfer of unprecedented levels of assets into trusts or to beneficiaries through gifting, without federal tax implications. Bear in mind, however, that the exemptions aren't permanent at this time, making reviews of estate plans essential.
Consider an estate plan update
Certain realities make review important when it comes to your estate plan. One is the current sunset provision in the tax reform legislation that calls for the expanded exemptions to end as of Jan. 1, 2026. Shifts in economic conditions could also prompt more legislative changes before that sunset date. To make the most of the exemptions that currently exist it is wise to act now. Solid estate planning will affect the administration of your estate and could also go a long way to reduce relevant tax implications.
Even if recent tax reforms don't appear to offer clear benefits to you, experts agree that potential non-tax issues also warrant undertaking a review of your existing estate plan. This review will uncover and possibly fill gaps in that plan to better protect your assets.
If you currently have no estate plan, now is the time to create one. By doing so you could minimize unwanted and unnecessary costs, and also maximize value to you and your loved ones. Contact our knowledgeable estate planning attorneys to discuss your particular needs today.