Last month's election of Donald Trump and Republican majorities in
both our Senate and our House of Representatives have raised a number
of significant financial uncertainties for some Americans-- including
those with estate plans. Below, we take a look at what Trump's proposed
tax changes are and what you can do to prepare your estate plan for any
significant changes in our country's tax laws.
President-Elect Trump's Tax Proposals
It's important to remember that presidents alone don't decide our
country's tax laws. For example, on the campaign trail, Donald Trump
talked about repealing the estate tax. However, for even minor changes
to our federal tax code, our legislators in the House and Senate have
to be in agreement, so there will likely be a level of compromise on any
new tax legislature.
That said, Trump's tax proposals include:
- Lowering all taxes via significant raises in standard deductions
- Lowering the number of income tax brackets from seven to three
- Lowering the maximum income tax rate from 39.6% to 33%
- Lowering business tax rates from 35% to 15%
- Repealing the estate tax
What You Can Do Now
For some estate plans, the elimination of the estate tax would be good
news. This proposal, however, is not a certainty and changes to the overall
tax code could have an effect on existing estate plans. These could be
positive changes, or they could negative.
As estate planning professionals, our team at Blackwell, Santaella &
Jahangiri LLP advises that if you already do have an estate plan in place
or have been thinking about establishing an estate plan, you should take
a proactive stance towards reviewing it and making any prudent changes
under the current tax laws. Any of these plans or plan amendments that
are made after the first fiscal quarter of 2017 could be subject to new
It's normal to feel some anxiety about your estate plan whenever there
is a change in legislative leadership. Here at
Blackwell, Santaella & Jahangiri LLP, we always keep a close eye on any possible changes to our tax code and
ensure that our San Ramon estate planning attorneys are ready to provide
our clients knowledgeable and thorough counsel in these matters.
Ready to have your estate plan reviewed?
Contact our offices today.