Celebrating 10 years! 2007-2017

Tax bill nail in the coffin of estate planning.

I feel bad for estate planning attorneys. The new tax bill f cocolawyer12/03/17
I know at least NY still has a state estate tax. 3lol12/03/17
I have no clue about estate planning. I would assume the tax cocolawyer12/03/17
Meh....the federal exemption was already at $5.6mm per perso alphadog1512/04/17
It's interesting, there appears to be this hard push to repe 2tierreality12/05/17
The people I know who do it charge $5000 for a trust. You'd fettywap12/05/17
"I feel bad for estate planning attorneys. The new tax bill caj11112/05/17
eh. the estate tax hasn't been a major part of estate plann dingbat12/05/17
Estate planning isn’t only about minimizing or avoiding ta greenhorn12/05/17
Guess I'm not surprised how few know anything about estate p loblawyer12/05/17
Yeah I obviously never practiced estate planning at all. I f cocolawyer12/06/17
cocolawyer (Dec 3, 2017 - 10:22 pm)

I feel bad for estate planning attorneys. The new tax bill further makes it difficult for them to make a decent living. I wonder if this is a talking point amoung estate planning attorneys?

Reply Like (0)
3lol (Dec 3, 2017 - 10:39 pm)

I know at least NY still has a state estate tax.

Reply Like (0)
cocolawyer (Dec 3, 2017 - 10:45 pm)

I have no clue about estate planning. I would assume the tax incentives going away would hurt the industry.

Reply Like (0)
alphadog15 (Dec 4, 2017 - 8:02 am)

Meh....the federal exemption was already at $5.6mm per person. If you had the type of clients that needed tax planning as part of their estate plan then you would probably still have plenty of clients that need the tax planning.

Also, another market is international clients investing in US based assets. I believe their exemption is still limited to $60k.

Reply Like (0)
2tierreality (Dec 5, 2017 - 7:06 pm)

It's interesting, there appears to be this hard push to repeal the estate and gift tax, but who benefits? Only a very small segment of our society.

Personally, when I look at our country's political future, I see the "Barbarians at the gates." We're obviously not there just yet, but with automation, and state pension and social security solvency concerns, we are headed towards a dark place if this isn't scaled back. The rich will be scapegoated, and these taxes will be reinstated, but higher than before.

An attorney whom I greatly respect is of the opinion that this push for repeal is one last gasp for the rich to give them 2-3 years to "get their affairs in order" before some seriously onerous estate and gift taxes are imposed. Thus, he's predicting that the next 2-3 years could end up being a boomtime for estate planning attorneys akin to 2012 and the fiscal cliff.

Reply Like (0)
fettywap (Dec 5, 2017 - 7:14 pm)

The people I know who do it charge $5000 for a trust. You'd only need 25 clients a year.

Reply Like (0)
caj111 (Dec 5, 2017 - 8:08 pm)

"I feel bad for estate planning attorneys. The new tax bill further makes it difficult for them to make a decent living. I wonder if this is a talking point amoung estate planning attorneys?"

Of course it's a talking point, but I wouldn't feel too bad. Estate planning attorneys also do wills, in fact that's the majority of where their fees come from in most cases. Tax or no tax, just about everybody needs a will, not everybody needs or needed to set up a trust. Furthermore, even if the tax advantages associated with them are gone, people will still set up trusts for children, other relatives, charities, even their pets. Let's not forget that there are some states that still have their own inheritance and/or estate taxes (New Jersey did get rid of their notoriously obnoxious estate tax though). Finally, estate planning attorneys also typically do guardianship arrangements for elderly and disabled relatives.

Any estate planning attorney with any decent amount of experience will regard this as a bump in the road, adapt accordingly, and continue to do just fine. Some accountants will feel the pinch though, given the reduced number of or non-existent estate tax returns to do. They'll still have trust tax returns, but fewer of those.

Reply Like (0)
dingbat (Dec 5, 2017 - 8:30 pm)

eh. the estate tax hasn't been a major part of estate planning since 2012

Reply Like (0)
greenhorn (Dec 5, 2017 - 9:51 pm)

Estate planning isn’t only about minimizing or avoiding taxes. It’s about avoiding probate, creating various vehicles to carry wealth to the next the next generation(s), providing for special needs children, etc, etc.

While this will definitely cause a minor bump in the road, but there’s tons more to estate planning than taxes.

Reply Like (0)
loblawyer (Dec 5, 2017 - 10:09 pm)

Guess I'm not surprised how few know anything about estate planning. Dingbat and greenhorn are on the money; tax planning is a relatively small part of an estate planning practice. Most well off clients want to control how their kids and grandkids use their money. Besides, the real money is in estate administration, not planning.

Our estate planning attorneys are not concerned about this. As someone said above, the exemption going to $5/10m a few years back eliminated most of that work then.

I also agree with the other poster that the inevitable socialist backlash to the continued excesses of this country's elite will ultimately lead to it coming back with a vengeance. Hope the rich enjoy the party while it lasts. Eh maybe that is wishful thinking, one can only hope.

Reply Like (0)
cocolawyer (Dec 6, 2017 - 1:02 am)

Yeah I obviously never practiced estate planning at all. I figured the tax portion was a bigger issue with trusts then I guess it is

Reply Like (0)
Post a message in this thread