Estate Tax is Gone; Long Live the Estate Tax

If estate tax is gone, why do I need a trust?

For 2018, an individual gets about $11.18 million of estate tax exemption.  This means that if you passed in 2018, the first $11.18 million would not be taxed.  A couple could possible double that to $22.36 million.  The exemption also includes lifetime gifts made.

BUT, that doesn’t mean the exemption is going to stay that large.  Congress is constantly changing the exemption.

You should always consider estate tax as part of your planning, even if it doesn’t apply to you today.  Congress could change the exemption back to $300,000 tomorrow if they want to.

Trust planning should always be considered, even if you consider your estate simple, not just for tax planning.

You have beneficiaries on all your accounts, your house is in both names…

Why else do I need a Trust?

1. You have children
   1. Under 18; or
   2. Who are poor money managers; or
   3. In a rocky marriage; or
   4. With credit issues; or
   5. With special needs; or
   6. Receiving government benefits
2. You want to keep control over the money for a long time or put conditions on its distribution
3. You want your assets to be managed well even if you are incapacitated
4. Medicaid planning
5. The 3,2,1 problem
6. Incapacity planning
7. Prevent Probate
   1. Keep your private affairs private
   2. Save on lawyer’s fees
   3. Keep your family out of court
   4. Speedy transfer
8. Every plan should have a backup and a Trust is an excellent backup