Because of considerable changes that President Trump may be making in regards to the US tax policy, many Ohio residents might delay taking estate-planning measures. However, since many estate-planning components, such as irrevocable trusts, offer several advantages besides tax benefits, it may be a good idea for people to begin taking steps toward fulfilling their estate-planning goals, regardless of how the tax debate in Washington is settled.
In regards to whether estate taxes will be repealed, a lot of tax commentators think that if this does occur, it may include a sunset provision, which means that these taxes will return in a decade. However, even if the repeal is made, another administration in the future will likely reinstate them. Therefore, for the benefit of a person's beneficiaries, it could be more important for people to go ahead and begin an estate plan that offers wealth protection instead of waiting for tax laws to be implemented. This can be done by transferring one's assets into irrevocable trusts. These types of trusts also offer management structure in the event of a future disability and divorce protection. In lieu of the changing tax laws and other uncertainties, people have the option of using a type of trust that offers flexibility if tax laws change, as well.
Additional estate planning strategies include setting up trusts as grantor trusts, using trust protectors and including a loan provision to a trust. People who do not have a spouse or those who have a spouse but have questions about accessing the trust assets may benefit from a particular trust called a domestic asset protect trust.
From making a will to moving assets into a trust fund, there are various modes of estate-planning tools created to help protect one's assets. An experienced local attorney could offer valuable advice to those who want to learn which tools would best suit their needs.Source: Financial Planning, "Estate planning when tax laws are uncertain", Estate planning when tax laws are uncertain, March 2, 2017