Every 4 years, a change in our Presidential elections results in a flurry of literature, workshops, and newsletters regarding potential changes in income and estate tax laws. This year was no exception, as the significant increase in the federal deficit resulting from costs associated with COVID-19 has placed more pressure on tax increases, including potential tax increases in the estate planning realm. The federal exemption amount, which is $11.7 million as of January 1, 2021, will, under the current law, decrease to about $6.7 million in 2026. Many believe that this decrease in the coupon will occur earlier or may even go down below the $6.7M returning to the former $3.5M. All of this is speculation at this point, but we must be prepared to act quickly, as some of these tax law changes may act retroactively.
As a part of our ongoing care program, we will continue to educate you, your families, and your trusted advisors, as well as make changes to your estate plans consistent with your goals and the changing tax laws. Please note, however, that the conversations that we had in 2020 will repeat in 2022, 2024, 2026, 2028… and every 2 years where there is a new congress and/or administration. That is one of the main reasons we have adopted our client care program. We want to communicate with our clients on an ongoing basis to make sure that we monitor the estate tax law changes, and make the appropriate changes to their estate plan if required.
For our clients: Remember to keep in touch with us to make sure that your plan is up to date. For those of you who are not on a client care program, make sure that you speak to a professional that has a client care program, because, in our opinion, there’s no other way to do estate planning in order to make sure that changes such as law changes are addressed.
Here at Family Estate Planning Law Group, we believe that planning is crucial. We want to help you and your loved ones experience peace of mind during this uncertain season by helping you establish an estate plan that changes with your life and your family. We believe that Together, We Plan for Life® To learn more about this, other estate planning topics, and our ongoing client care program, visit our website, explore our blog, and schedule your complimentary consultation today!