After attending several webinars and seminars on the changing landscape of estate planning due to the 2024 election results, the Munson Law team has put together the following insights and observations.
Post-Election Estate Planning: Adapting to the 2024 Landscape
The re-election of President Trump and Republican control of Congress have reshaped the estate planning landscape. This shift significantly reduces the likelihood of major estate tax changes in the next four years, prompting a reassessment of planning strategies for both attorneys and clients. While the urgency surrounding pre-election planning has subsided, proactive and flexible planning remains crucial.
The political landscape influences client perceptions of risk, making communication more important than ever. Attorneys should help clients understand how the new environment impacts their strategies. For clients with net worths over $50-60 million, estate tax concerns remain largely unchanged, while those with $14-40 million can take a breath of relief. However, comprehensive planning should still continue for all.
The current political climate suggests extending or enhancing the 2017 tax cuts, reducing the immediate need for estate tax planning. However, flexibility remains key, especially with the potential sunset of tax exemptions in 2026. Clients must remain adaptable to shifting laws.
Estate Tax Exemptions: Act Now
Generous exemptions for gift taxes ($13.6M per individual, $28M for couples in 2024) and generation-skipping transfers (GST) may soon expire. It’s a classic “use it or lose it” situation—secure these benefits while they last.
Trusts: Powerful Tools for Protection
Trusts such as SLATs (Spousal Lifetime Access Trusts), GRATs (Grantor Retained Annuity Trusts), and 678 Trusts can help preserve assets and minimize taxes. However, careful planning is required to address challenges like divorce or restricted access to transferred assets.
Income Taxes: Stay Flexible
Income tax reductions under the Trump administration could present opportunities, but specifics are still unclear. A flexible strategy is key to adapting to changes as details unfold.
For Business Owners
For those planning to sell a business, collaborating early with estate planners and tax advisors ensures favorable tax treatment and alignment with long-term goals.
Munson’s Musings
The tax landscape may be uncertain, but proactive action now can protect assets and maximize opportunities. Whether leveraging trusts or rethinking strategies, we’re here to help. Let’s prepare for the road ahead—schedule a consultation with Munson Law Firm today.
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