Florida Estate Planning
Attorney Richard Ehrlich publishes second article in instructional series, this
time on estate tax law
In this comment, Richard
Ehrlich, Esq. addresses the issue of estate tax law based on the Tax Cuts and
Jobs Act” (TCJA).
In the second article of
his series of Instructional Articles, Florida Attorney Richard Ehrlich comments
on the issue of estate law tax pursuant to the Tax Cuts and Jobs Act (TCJA).
In brief, “The Act
to provide for reconciliation pursuant to titles II and V of the concurrent
resolution on the budget for fiscal year 2018, Pub.L. 115–97, is a
congressional revenue act originally introduced in Congress as the Tax
Cuts and Jobs Act (TCJA), that amended the Internal Revenue Code
of 1986. Major elements of the changes include reducing tax rates for
businesses and individuals; a personal tax simplification by increasing
the standard deduction and family tax credits, but
eliminating personal exemptions and making it less beneficial to itemize
deductions; limiting deductions for state and local income taxes (SALT) and
property taxes; further limiting the mortgage interest deduction; reducing
the alternative minimum tax for individuals and eliminating it for
corporations; reducing the number of estates impacted by the estate tax …. For
deaths occurring between 2018 and 2025, estates that exceed $11.2 million
are subject to a 40% estate tax at time of death, increased from
$5.6 million previously. For a married couple aggregating their
exemptions, an estate exceeding $22.4 million are subject to a 40% estate
tax at time of death …” (Wikipedia, https://en.wikipedia.org/wiki/Tax_Cuts_and_Jobs_Act_of_2017#Estate_tax, footnotes omitted)
In this comment, Richard
Ehrlich, Esq. addresses why major changes in tax law highlight the need for
periodic review of existing estate plan with a competent qualified attorney.
The much publicized “Tax
Cuts and Jobs Act” (TCJA), passed under the current administration, made some
significant changes to Federal estate tax laws. While a thorough
discussion of TCJA’s impact on Federal estate tax laws is beyond the scope of
this article, one of the major changes is the temporary rise of the estate and
gift tax exemptions to $11.2 million until 2025.
Many may look at the
significant estate and gift tax exemption increase and think there is no need
for future estate planning or think that estate plans already in place are now
obsolete. While the major increase in the exemption amount would exempt
all but the richest few from worrying about Federal estate or gift taxes,
individuals should still seek out the services of a qualified attorney to
review their existing estate plans.
Mr. Ehrlich explains: “A
prudent planner may review several aspects of an existing estate plan to ensure
that all affairs are in order. For example, a will or a living trust may
have been drafted years or even decades ago.
Depending on when the estate plan was created, then applicable estate
and gift tax exemption may have been as low as a million dollars per
individual.”
Some estate plans may
distribute assets to the heirs using a formula or give certain amount to
grandchildren up to the exemption amount set by law. While the particular
choice of planning languages may have been of little consequence at the time of
drafting, whenever there is a major change in the law, the existing language
may suddenly drastically change the outcome of the estate plan.
Therefore, a prudent planner will review the language of the estate
planning documents to ensure that the potential outcome reflects the wishes of
the client.
In addition to changes
in Federal law, there may be changes in IRS regulations, state law, or court
precedent that can all result in significant changes to the legal landscape
compared to when the estate plan was set up. Furthermore, clients and
their family may undergo significant changes in their lives and circumstances
that may necessitate a change to existing estate plans. The best way to keep your estate plan current
is to have them periodically reviewed by a qualified estate planning attorney.
The full instructional
article is published on the Blog of Mr. Ehrlich at https://RichardEhrlichBlog.blogspot.com
About
Mr. Richard Ehrlich, Attorney at Law
Richard Ehrlich received his Juris Doctor from the Washington
University in St. Louis School of Law. Before
attending law school, he attended the University of Chicago and received his
B.A. in Political Science. Richard also completed
the proper training to be a Certified Financial Planner at New York University.
He
is a member of the following Bar Associations: Florida, New York, and New
Jersey.
Website: http://ehrlichlaw.us
His profile at “Lawyers of Distinction” is https://www.thelawyersofdistinction.com/profile/richard-ehrlich-9555/
His LinkedIn profile is at https://www.linkedin.com/in/richard-ehrlich-777b513/
His blog is at http://richardehrlichblog.blogspot.com/
**** Mr. Richard Ehrlich is an Attorney in Florida, specializing in Corporate, Estate and Personal Financial Planning in Florida. In the course of his career, he has prepared hundreds of estate plans and helped hundreds of small businesses navigate the various issues involving insurance, retirement and employee retention. He has helped numerous families deal with the difficulties of taking care of elderly relatives and assisted with all of their long-term planning and long-term care needs. Finally, he has helped investors with their losses in unsuitable investments. LinkedIn Profile: https://www.linkedin.com/in/richard-ehrlich-777b513/; Attorney Profile: http://www.eldercounsel.com/profile/richard-ehrlich-ehrlich-law-center-pa/; Attorney Profile: https://solomonlawguild.com/richard-ehrlich%2C-esq; Attorney News: https://attorneygazette.com/richard-ehrlich%2C-esq#c35a1098-f039-43ab-b0dc-06cff6dabf61
