People in Ohio who have an estate plan in place may want to review their documents to see how a potential repeal of the estate tax may affect their assets. There may be a number of changes they should make if the estate tax and/or generation-skipping tax is revoked.
Many people have estate plans that include an exemption trust that will hold the estate tax exemption amount. Many estate plans place any assets that are in excess of the exemption amount into marital trusts. There are also plans that make provisions for a gift to be placed into a multi-generation trust, which is funded using the amount allowed by the exemption for the generation-skipping tax.
The proposed repeals and increased exemptions make income tax planning even more essential to estate planning. If the repeals are passed, individuals would be able to make certain changes to their current estate plans that could bring them substantial tax savings.
Although none of the tax reforms have yet been approved, it is important that individuals begin considering now how the changes will impact their estate plans. If the tax changes do take place, there may not be enough time to react before the legislation is implemented.
Individuals who have any questions about how changes to the tax law may affect their estate plans should speak with an attorney who practices estate planning law. An attorney may help a client amend their wills and trust provisions so that they are able to take advantage of any tax changes that could reduce their estate tax burden. The lawyer may also review an estate plan to ensure that the adequate tools are in place to protect the estate and to address any transfer of property or inheritance issues that may arise.