Many people are taking the opportunity to look at their current estate plans and tax plans in light of new tax laws in the U.S. While everyone can benefit from a regular review of their estate planning tools, high net worth clients have the most to gain from setting up a time to talk about estate planning and asset protection planning.
There are a number of different tax implications for wealthy families currently facing the restructuring of their estate and tax plans. Trusts can provide valuable protection from divorcing spouses and creditors and also enhance the control of an individual over how a beneficiary inherits wealth.
This is particularly important for families that have addiction, mental illness, or spendthrift considerations. Furthermore, trusts can be used to help preserve wealth for numerous generations.
Since numerous different states will have their own estate tax regimes and you may own property in multiple states at the same time, anyone who owns property or resides in those states should continue to plan around these state level taxes.
For very high net worth clients who still have exposure to the federal estate tax or live and own property in states with their own estate tax, traditional wealth transfer strategies identified by an experienced estate planning lawyer can be helpful.