NOVEMBER ELECTION- CHANGE MAY BE COMING…WHAT ABOUT YOUR ESTATE PLAN?

NOVEMBER ELECTION- CHANGE MAY BE COMING…WHAT ABOUT YOUR ESTATE PLAN?

This is NOT a political post but hopefully a post that will trigger an interest as to what may happen in the estate planning “world” if the administration changes. Estate planning techniques are available in 2020 to save the use of your Basic Exclusion Amount (the estate/gift tax exemption amount of $11.58 million) (“BEA”). However, if you wait too long, then there may not be time to take advantage of these techniques. Of course, even if the administration stays the same, a change in the BEA is coming in 2026 but, obviously, there will be more time to plan.  

Under Joe Biden’s plan the “step up in basis” upon death will be discontinued which could create huge income tax issues for your beneficiaries and likely the BEA will be reduced. Such changes may affect many individuals.

Gifting techniques are available in 2020 to ensure that your BEA is fully utilized. The income tax issues of the lack of step up in basis also needs to be discussed in light of the changes. Of course, there is no guaranty that the law will not remain the same and 2020 gifts may not be necessary.    

The real issue is when is the best time to act when there is no clear answer as to what the law will be? Obviously, we have no crystal ball and many people are waiting until after the election to do something. Just realize that, once the election is over, there is very little time to prepare documents by year end and obviously no guaranty as to what legislation will pass in the future. Our office is closed the last week in December and we may not have sufficient time to handle requests after the election.

If you would like to have a zoom conference to discuss the possible changes and effects on your own estate plan, then please contact us. Otherwise please contact your own legal counsel, CPA and/or financial advisor. After the election, the window may be short so do not delay!

ADVICE: Review your estate plan and assets. Look at the tax plans of both candidates. Determine if the tax laws will affect your tax situation or contact us to discuss your estate plan. Be informed and act quickly!!!!

GENEROSITY IS A KEY TO HAPPINESS…REACH OUT AND HELP SOMEONE TODAY! 😎