Top Ten Estate Planning Recommendations before the End of 2020

The end of 2020 is quickly approaching and due to the adverse impact of the coronavirus and the election coming up in about a month, it may be time to look over and update your estate plan.

Below are the top ten estate planning recommendations to consider before the end of 2020:

1. Exemptions may go back down
   1. If President Trump is not reelected, the $11.58M per person tax exemption will likely go down before the expected year of 2026. And even if President Trump is reelected, the exemption is expected to top back down at the end of 2025. 
   2. It may be smart to take advantage of the tax exemption before the end of 2020 as you will be safe from a “claw back”
2. Discounts, GRATs, Grantor Trusts, etc. may go away
   1. Similar to the tax exemptions, if Joe Biden is elected, there will likely be a vast change to this area of estate planning. 
3. Married Couples can Have their Cake and Eat it too
   1. By taking advantage of certain trusts, you can take advantage of the gift tax exemption while not losing access to your assets. 
4. A Single Individual can also Have his or her Cake and Eat it too
   1. In certain jurisdictions, you still may be able to use certain trusts to “gift” into in order to take advantage of the exemption.
5. Interest Rates are at an all-time low
6. Values of some Asset Classes are Depressed
   1. Particularly real estate
7. Migration to Florida and other low or no Income Tax States 
8. Capital Gains Rates could Double
9. Hold off on Charitable Gifts
10. Be Smart and Sensible 

See Albert W. Gortz, David Pratt, Mitchell M. Gaswirth, Andrew M. Katzenstein, & NAthaniel W. Birdsall, Top Ten Estate Planning Recommendations before the End of 2020, National Law Review, October 6, 2020.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.