In a Year Full of Uncertainty, Estate Plan Flexibility is Key
Tax Planners and Clients can learn a lot from the Republicans’ failure to replace the Affordable Care Act with their own plan. Clients have long awaited a repeal of the estate tax or significant reform of the transfer tax system, but the inability of the Republicans to pass health care legislation lends itself to the possibility that any expected transfer tax repeal and reform may meet a similar fate. The linked article below by WealthManagement.com’s contributing author and practicing attorney Louis S. Harrison explains why, in such an unclear tax environment, clients may want to take advantage of tax planning strategies that adhere to the uncertainty. Strategies that utilize Grantor Retained Annuity Trusts, Loan Arrangements with Trust Beneficiaries, or built-in flexibility with regard to funding provisions in revocable trusts (whereby different funding provisions would be implemented depending on whether the estate tax is in effect when the Grantor passes away) are advisable when the transfer tax horizon is blurry.