Tax Reform Wealth Planning Opportunities

Tax reform legislation doubled the federal estate, gift and generation-skipping transfer (GST) tax exemption to $11.18MM (as indexed for inflation) per person. This created an eight year window for increased wealth transfer planning.

Opportunity: The increased exemption amounts expire December 31, 2025. However, unlike estate and gift tax reform in the early 2000s, the increase in exemption amounts apply to both the estate tax and the GIFT TAX. In other words, you can use the increased exemption amounts while you are alive via a lifetime gifting strategy, a true use-it-or-lose-it planning opportunity.

Strategy: Affluent families should consider developing a lifetime gifting strategy to use some or all of their increased exemptions prior to December 31, 2025. The very thought of transferring such a large piece of wealth can create trepidation. Enter the spousal limited access trust. This often used, time tested strategy will gain an increasing amount of attention from wealthy families looking for thoughtful opportunities to preserve, protect and pass their wealth.


Simple, Effective, Time Tested

Most families are conflicted when faced with wealth transfer considerations. Will they be financially secure in the future? Will their heirs face significant estate taxes? The spousal limited access trust can achieve financial flexibility, optimal estate tax results and heightened asset protection. This simple, effective and time tested strategy can achieve:

  • Financial Flexibility
  • Optimal Estate Tax Results
  • Heightened Asset Protection
  • Credit Shelter Trusts
  • QTIP Trusts
  • Spousal Limited Access Trusts

To learn about these estate planning opportunities and for more tax reform resources: