Pitfalls and Opportunities Under the New Federal Tax Law - Part 1
First we will look at potential pitfalls, including the risks that the increased exemption could potentially: (i) thwart a goal to make your spouse the first priority under your estate plan, (ii) prioritize grandchildren over children, and (iii) trigger estate tax at the state level for a married couple when the first spouse passes away. We also describe the risks of a few cutting edge approaches that some advisors are advocating.
In Part 2, we look at new income tax planning opportunities. Regardless of your net worth, the increase in the federal estate tax exemption creates opportunities for significant capital gains tax savings when combined with the so-called "step-up" in cost basis applied to assets at death.
In Part 3 we look at potential estate planning opportunities. Each strategy involves making gifts to family members, either outright or in trust.