It is a good idea to review your trust with each passing year and make sure everything is up to date. The end of the year is a great time to take an inventory of your year and take care of necessary business. Here are some reasons why you would want to make changes to your trust:
· New member of the family through birth or marriage
· New assets – if you buy a business or a second home
· Change in family relationships – if you no longer are on good terms with a beneficiary
· Substantial increase in net worth
· Changes to living beneficiaries or trustee
· Executor no longer wants the role
· Changes to tax law with estates and trusts
You may be aware that the Build Back Better Act has the potential to pass and will make changes to the current tax laws regarding trusts and estate planning. How would this new law affect your trust? Now is an excellent time to review it. If the act passes, it will be implemented on January 1, 2022.
Potential Changes to Trusts Outlined by the Build Back Better Act
Those of you with current trusts need to stay up to date on current tax law to see if your trust will be affected. Review these proposed changes with an estate planning lawyer:
· Taxes on property acquisitions through the trust
· No more discounts on the transfer of non-business assets
· Stricter limits on passing down wealth to future generations
· State and local tax deductions up to $40,000
· Taxes on gifts to beneficiaries in grantor trusts, excluding grantor’s spouse
These changes and more can affect your estate planning and if you would like to make changes to your current trust. Keep up with the recent news to see if the act passes and make detailed plans on what to do if it does. When you hire a lawyer, you can be sure that they will have the knowledge to maximize your trust benefits.
If you are curious about the potential new tax law regarding trusts, meet with Miles & Hatcher, LLP, to make changes if needed. Then, we can walk you through how your trust will be affected. Call to schedule a free consultation: (909) 481-4080.