TAX CUTS AND JOBS ACT OF 2017
The new tax law will begin to take effect in 2018 and has brought several changes to the estate and gift tax. Beginning in 2018, the estate and gift tax exemption will double to $11.2 million for individuals, and $22.4 million for married couples. The exemption will increase each year for inflation until the year 2025 when the exemption will return to the current levels of $5.9 million for individuals and $10.9 million for married couples. This is an excellent planning opportunity for wealthy individuals to move substantial assets out of their estate for future generations of their families. Assets held at death will still be eligible for a step-up in basis under the new tax law, providing heirs with less capital gain exposure for assets they receive from the decedent.
ESTATE PLANNING
We provide our clients with a comprehensive estate plan to protect wealth in a tax efficient way to achieve a family's goals. We help small business owners, executives, professionals, and retirees protect and preserve their wealth for future generations. We achieve these goals by providing wills, trusts, powers of attorneys, and medical directives for our clients.
We also provide our clients with sophisticated estate planning strategies through the implementation of Grantor Retained Annuity Trusts (GRATs), as well as charitable trusts to preserve our client's philanthropic goals.
SPECIAL NEEDS TRUSTS
A Special Needs Trust (SNT) is established for a disabled individual for the purpose of allowing that individual to remain entitled to the government assistance they are already receiving. A SNT has struct structure and compliance rules regulated by the Pennsylvania Department of Human Services that must be followed to ensure the beneficiary is able to maintain the government assistance they are receiving while also receiving assistance from the assets held in the SNT. All SNTs must be approved by the Office of General Counsel for the Pennsylvania Department of Human Services. Owning a house, a car, furnishings, and normal personal effects does not affect eligibility for SSI or Medicaid. Ownership of other assets, such as cash in a bank account, will disqualify a disabled person from receiving SSI or Medicaid.