Are we going to see Federal Tax repeal?
Are we going to see Federal Estate Tax repeal?
The “plan” unveiled by the Trump administration was a broad “outline” of a tax reform. Mr. Trump has suggested an alternative system may be to tax any increase in the value of an asset over time, for estate assets that exceed a generous exemption amount at capital gain tax rates. If the past is any guide to the future when it comes to tax reform, proposed legislation has a way of being significantly altered during the legislative process.
Regardless of whether the federal estate tax is repealed, estate planning for tax purposes and planning for probate expense reduction remain important for the vast majority of the population.. Remember, the federal estate tax has a way of reappearing depending on who is the next President. This also applies to the estate and inheritance tax laws at the New Jersey state level.
Deciding how assets should pass to one’s heirs is one major reason in preventing the state from deciding how and to whom assets are distributed. Estate planning always remains extremely important for families with minor children and/or special needs children. Also, the preservation of family wealth is another reason estate planning remains relevant.