As a follow up from the announcement of the Tax Cuts and Jobs Act signed into law in December, we wanted to reach out to you to specifically discuss the exemption changes. The good news is that the estate, gift and generation skipping transfer tax exemptions doubled under the new law. Beginning this year, each individual can pass approximately $11.2 million during life, at death, or in a combination of the two free of estate, gift, and generation-skipping transfer tax. Married couples can transfer approximately $22.4 million and these amounts will increase for inflation each year until 2026.
With the continued increase of the exemption amounts over the past few years, many trusts previously created for married couples (known as “AB Trusts”) contain provisions that may be out of date. Your attorney may advise you to update your Trust with more flexible Trust techniques that still allow you to maximize tax savings. We highly recommend that you contact your attorney to review your current estate plan to ensure that it still accomplishes your objectives.
Please let us know if you’d like us to be involved in your conversations and or meetings with your attorney; we’re happy to help. If you end up amending or revising your Trust, please besure to send us an updated copy for our records as well.
As always, please don’t hesitate to reach out with any questions or concerns.
Greg R. Solis, AIF®
President and CEO
Bob Medler, CRPC®, CMFC®, AIF®
Wealth Advisor / Investment Analyst
78-075 Main Street
La Quinta, CA 92253
Office: (760) 771-3339
Fax: (760) 771-3181
CA Insurance License #0795867 & 0C05523