The increase in the estate tax exemption threshold renders some trusts obsolete. For those planning in the late ‘90s, when the exemption limits were significantly lower, shielding assets in a trust was an excellent planning decision. But now, with the exemption limit for couples at $22.4 million, these planning vehicles are unnecessary for many who previously benefited from their application. If a trust is part of your current estate plan and is now unwarranted, it is important to clear that language out as soon as possible.
See George, A Gift from the New Tax Act: Kill That Trust, Fox & Mattson, P.C., December 22, 2017.
