Hopkinson & Abbondanza Blog

Wednesday, February 15, 2017

Planning in Time of Uncertainty

With the change in administration in Washington, along with Republican control of both sides of Congress, we are being asked what changes we expect in coming months in the area of estate and gift tax.  Should we expect that estate taxes go away?  If so, what else does that mean?

Estate taxes do not exist for 99.8% of Americans!  The proposal would eliminate estate taxes for the remaining 0.2%.  However, it may possibly replace the estate tax with an income tax by limiting how much basis “step-up” people will enjoy who later sell highly appreciated assets.  Interestingly, the proposal is silent on doing away with gift taxes, so who knows!

The key right now is to plan for flexibility. We don’t know what will happen this year, or even next.  We can expect some income tax reductions, so good planning will always be mindful of both income and estate tax issues. 

We have been counseling our clients for years about everything important about planning for loved ones, from tax issues to asset protection from creditors and predators,   blood-line protection, and values promotion.  Out approach won’t change.  We are constantly reading and educating ourselves on the latest laws, and strategies to help our clients achieve their goals.  That is our mission.

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