We are one month away from individuals filing 2017 taxes and today we’ll discuss taxes for the longer term. Yes, in 2018 the new provisions passed by Congress in December, 2017 will take effect. Coverage of these provisions has highlighted the impact to companies and businesses.
Today, we will consider the impact of these new provisions upon you as an individual. Whether you have created an estate plan or not, now is a good time to review how these new tax provisions will impact you and those with a vested interest in you.
Making choices when drafting your will/trust and the supporting documents often concentrate upon personal decisions about people and their role(s) in your care, your assets and people/causes that matter to you. Tax changes for 2018 may or may not cross your mind. National external decisions made do impact you and your family. Let’s review considerations for you to discuss with the professionals helping you implement decisions you make.
- State taxes – 15 states will have some form of estate tax. The Tax Foundation provides detailed information by state. This link will take you to their site: The Tax Foundation
- Married couples – there have been changes made for married couples around the issue of “portability” (i.e. inheritance of assets after the death of one spouse). It would be wise for couples to discuss with legal professionals how best to be positioned for “portability” to make sure the exemption limits avoid estate tax.
- Estate Taxes – if your estate is valued between $5.6 and $11.2 Million ($22.4 Million for married couples) the estate tax changes come into play. If you’re estate is below these thresholds, the new law will most likely not impact you.
- Customize your legal documents – each situation is different. Using an attorney to customize documents such as your Financial Power of Attorney can save heartache when the time comes to care for you and handle the administrative tasks after you’re gone. Unintended consequences are frequent when using “boiler plate” documents without the capability to specify for your situation.
- Are you one of the 60% of US citizens who has yet to draft legal documents? OR, have you in the past few years reviewed documents you have drafted to review how national changes impact you/your loved ones?
Making time to get information helpful for you and your family is time well spent. Change is constant – the good news is that you can change your mind and update your wishes! Breathe in, breathe out …
The Living Planner proactively helps you assess what you have in place today in business and home. We explore ways for you to protect what is important to you by asking questions and exploring with you. When you’re ready to explore how to be ready, we’re here for you.
Contact us to learn more about how we work with individuals, business owners and employees via Email or online @ The Living Planner #ExpectTheUnexpected #CareForPeopleCareForBusiness