One week post-election, what we are sure of is that we will not know the full outcome of what our federal government will look like until after the new year – at which point it may be too late to act to take advantage of current estate tax exemptions.
We do know that the IRS has issued final regulations confirming that the use of one’s exemption in 2020 will be effective even if exemptions are reduced through a 2021 tax reform. If you want to guarantee the use of this historically large estate tax exemption, 2020 may be your last chance.
There are many different options for gifting to use your estate tax exemption, including gifting to your own spouse, which gives you indirect access to those assets through your spouse. Gifting trusts, whether to a spouse or to children or other heirs, can be structured so that you maintain control of assets, and those assets can pass down through multiple generations and not be subject to estate tax.
If your estate is worth more than $7 million, our best advice based on the current situation is to do some gifting before the end of the year.
Gifting trusts are one of the many types of trusts we can handle. To get started, simply give us a call at (858) 755-6672 or click here to schedule a consultation.
We look forward to protecting you and your family soon.
