Trust Planning after the 2017 Tax Act

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10:55 AM - 12:10 PM
The 2017 Tax Act dramatically transformed income tax, estate, and other planning. While most advisers by now are familiar with the changes in the exemption and standard deduction, there is so much more to understand how to properly advise clients. Estate planning must be pursued by clients well below the current exemptions because of sunsets and the risk of future changes in the law. Asset protection planning remains vital to almost all clients. Clients of all wealth levels, even those well below the estate tax exemption amounts can benefit from income tax planning because of the impact of the law on charitable contributions, 199A deductions, state income taxes and more.

Given the large size of exemptions, the interaction of these tax, asset protection, estate and other planning goals, the role of the financial planner in this process is more critical than ever. Planners must understand the interplay of these seemingly contradictory goals that affect many if not most clients, the new types of trusts that are involved, how these trusts differ from trusts typically used in planning before the 2017 Act, how all of this planning affects the need for and use of life insurance, how planning affects asset location decisions, and much more. Wrap into this mix longevity risks and other planning issues planning for most clients, not just the uber-wealthy, has become more complex than ever.