As the new administration continues its tour of shaking up every corner of the country's establishments, the estate planning industry has been holding its breath, waiting to see what new laws may be passed soon that could have huge impacts on estate plans throughout the country. Many estate planners are concerned, and rightly so, that the administration's desire to repeal the estate tax may render years of hard work useless overnight. While it is certainly true that a drastic change in the law could have large effects on the industry, this is no reason to put off important estate planning completely.
Regardless of what may become of the estate tax in the near future, estate planning can still benefit from the proper use of trusts. There are a number of different trust options available to discerning consumers that may prove to be quite helpful whichever direction the law takes. Many of these include irrevocable trusts, which limit the access a grantor may have to an asset, but have more far-reaching power to protect the underlying asset.
Of course, even if the estate tax is repealed, it is unlikely that we will all wake up one day to find that it has simply evaporated. Such an action will probably take a number of years to fully take effect, and even so, a future administration may reinstate it before it can even have time to fully disappear. This does not provide steady guidance for those seeking to protect their estates, but it does highlight the value of trusts that can protect against a number of potential threats.
If you are concerned about the future of your estate plan, do not hesitate reach out to an experienced estate planning professional. Proper legal guidance can help you determine a path forward in uncertain times and ensure that your careful planning is not undone overnight.