Post 2010 Tax Act Estate Planning Tips

Checklist – Post TRA Estate Planning Ideas

Estate planning is not over, only different. Consider:

√  State estate taxes. In
decoupled states the cost of state estate tax could be substantial. While state
estate taxes will not justify the extensive and costly planning a 55% federal
estate tax would have, the costs are not insignificant and planning in
appropriate states is warranted.

√ Residency/Domicile for a client is
significant for the determination of income tax, trust situs for non-grantor
trusts the client has established, estate taxation (or avoidance), and
interpretation of the client’s will.

√ Income, capital gain, dividend, and other
tax planning considerations under the TRA. Asset location, Roth conversion, and
a myriad of other decisions have been affected.

√ TRA’s generous estate tax changes disappear
in 2013, so planning for that possibility, however low, a client may view the
likelihood could be valuable.

√ Asset protection was pre-TRA and will
remain post-TRA significant. However much the tax laws gyrate, malpractice,
divorce, premises liability, and other risks can decimate an estate far worse
than any tax.

√ Planning for a child or other client family
member or loved one with special needs or special health issues. Approximately
120 million Americans live with chronic illness, yet most plans give scant
attention to the issues they face.

√ Preventing elder financial or other abuse.
The mere fact that this issue has a name, “elder financial abuse” suggests how
common the issue has become, and how important to plan for.

√ Budgeting. Many, perhaps most, wealthy
clients view “budgeting” as a four letter word. But a the recent economic
disruptions demonstrated, budgeting remains the foundation of every financial
plan. A financial plan is the foundation for investment planning. And all of
these are critical to properly addressing estate planning, whatever the tax
system provides.