Is creating an estate plan part of your new year’s resolution? If it is, you have picked a great time to get started. One of the most common estate planning tools right now is called, “the spousal lifetime access trust”… Or “SLAT.” in short, a “SLAT” allows you to transfer assets and protect them from creditors… *and the estate tax… But still have access to them through your spouse. So why have these “slats” become so popular? The answer is the 2020 election. Several of the democrats running for president say estate tax reform is high on their agenda. So if the Democrats take the white house, and control of congress, you can expect a tax increase on the wealthy to pay for health care, student loan forgiveness and more. One proposal could see the gift tax exemption plummet from the current 11.4 million dollars to one million dollars. The estate tax exemption might be reduced from $11.4 million to $3.5 million. And that could be just the start.
While most taxpayers will likely take a wait and see approach, that strategy could be costly in the long run. No one really knows how harsh the reform legislation could be… Or when it might take effect. Will you have time to make a change *after election day if need be? The best advice is don’t delay. For more information on “slats” or other estate planning tools to help protect your assets… Call Doane and Doane at 561-656-0200 or visit doneanddoane.com.