President Trump’s campaign platform expected an abolishment of the estate tax. This could lead some individuals to think that they won’t need estate planning in the event that he is able to follow through on his promises. The current estate tax sits at 40% and Trump intends to repeal it. The estate tax laws that were in place for 2017 were actually established four years ago. These allow exemptions of up to $5.49 million for an individual and $10.98 million for a couple in 2017.
When a spouse passes away and leaves everything to their spouse, there is also no tax collected. This means that repealing the estate tax would only have significant implications for those individuals with a net worth higher than $11 million. This is why whether or not there is a federal estate tax in place, you will always need the essentials when it comes to estate planning. remember that estate planning is about more than what happens when it becomes time to pass on your property to individuals you love after you pass away.
It is also about establishing important documents like powers of attorney and healthcare proxies so that individuals are equipped to make decisions on your behalf if you become incapacitated. With or without an estate tax in place, you will need to approach the estate planning process to consider your individual issues such as your personal property, management of your pets, assisting with special needs, planning for a child, handling your digital afterlife and many other issues associated with the estate planning process.