By now, you have probably heard that tax laws are expected to change significantly in the next few years. The first of these changes could be implemented anytime, and some may even be applied retroactively. The question is, do you redo your estate plan now, or wait to see how the changes will impact your assets?
Different Approaches to Coping With Tax Law Reforms
State and federal tax laws are key considerations to determining the best way to own property during your lifetime and pass it on to your heirs. There is no right or wrong way to respond to proposed changes in tax laws, but if there is a chance taxes may be increased on your assets, you may want to consider updating your estate plan.
In general, there are three positions clients can take:
- Do tax planning now. Since the proposed changes are public knowledge, there’s no downside to taking action immediately—especially if it’s been a while since you made your designations. Even if you choose to make only minor adjustments to your plan, we will be able to tell you how your holdings could be affected so you can make smart decisions about your future before the rush.
- Do nothing until the laws change. There’s nothing wrong with a “wait-and-see” approach, except the fact that thousands of people are in that same boat. Once the changes are announced, estate planning lawyers and financial advisors are likely to be booked for weeks—leading to financial consequences and potential missed opportunities.
- Revise and diversify. Think of this as a compromise between acting fast and waiting for the news to drop. You may be able to move some assets, restructure your plan, or take advantage of different tools to better diversify your holdings without going through a complete overhaul.
No matter which approach you prefer, the experienced New York estate planning lawyers at Landskind & Ricaforte Law Group can help you realize your goals. Contact us today through our online form to learn how we can be of assistance.