2019 Update

The estate tax world had been in flux for many years, until 2012 when we finally got a permanent law. Well, we are back to the uncertainty again.  It is probably not as concerning as it was in the early 2000s, when the exemptions went from high to extremely high.  In 2018 we now have an estate tax exemption of $11.18 million per person ($11.4m in 2019!).  This is wonderful, except that we are back to that world where it goes away in 2025. This time, though, it will go back to $5,000,000 adjusted for inflation; therefore, it is expected to be about $6,000,000 at that time.  This is, of course, assuming Congress does not make the current law permanent. Unless Congress does surprise us in the next month, I don't expect that to happen.  

These large exemptions have changed our focus from estate tax concerns to capital gain concerns and making sure your beneficiaries get as much as they can from you.  A major focus recently has been creating simplicity, at least for you. The older AB Trust plans create complexity and potential adverse capital gain effects, so reviews are important! 

I am also concerned about making sure that Durable Powers of Attorney are kept up to date. I have heard several stories of them not being accepted by banks or other financial institutions if they were signed more than a couple years prior.  The agencies are apparently concerned that the Durable Power of Attorney may have been changed between the date signed and it being used. Of course, the problem is that if it is being used, the principal is often incapacitated and unable to confirm its validity. Therefore, I strongly encourage you to double check your Durable Powers of Attorney and if they were signed more than two years ago, give me a call to get them updated.