Law Offices of Frye & Vazquez, P.L.
Call Today. 305-508-5749 | 877-421-5473

Does the new tax law make my estate plan obsolete?

As a savvy Florida resident, you know that Congress passed and President Trump signed into law the Tax Cuts and Jobs Act in late December. What you may not have asked yourself, however, is whether or not this new law affects your estate plan.

As Market Watch explains, the new law may well rid your estate of the need to pay federal estate taxes, the infamous "death tax" that plagued so many estates for so many years. Under the old law, your estate had to pay an estate tax if its value was over $5.6 million. Under the new law, that tax-free value is now $11.2 million. Since Florida does not have its own estate tax, this means that unless you are among the uber-rich, your heirs now get more than they would have had you died last year.

Married couples exemption

Before you become too complacent, however, and decide that you have no need to review your estate plan with your attorney, consider the fact that the estate tax exemption also doubles for married couples under the new law. This means that between the two of you, you can now pass $22.4 million to your heirs estate tax-free - but only if your respective estate plan documents contain the proper wording so as to invoke this portability aspect. Therefore, this is precisely the time to talk to your attorney.

Periodic estate planning review

Actually, estate planning experts recommend that you review your estate plan every three years or so to make sure it still meets your needs. This is especially true whenever you have a life-changing event such as the following:

  • Marriage or divorce
  • Birth of a child or grandchild
  • Death of a spouse or child
  • Sale of your business
  • Retirement
  • Receipt of a significant inheritance

In addition, should you or a family member develop a chronic illness or sustain injuries resulting in a permanent disability, this, too, could necessitate an estate plan update. This is general information only and is not intended to provide legal advice.

No Comments

Leave a comment
Comment Information

What Our Clients Are Saying

  • It is difficult enough to cope with the emotional challenges of closing a parent's estate, and when you are also faced with the issue of your parents having insufficient documentation, and being remote from your siblings… - Zara L.
  • Austin Frye provided legal services to my father while alive and to his estate after his death; when showing the EP docs his firm prepared to other professionals (lawyers, financial advisors, accountants)… - Mark S
  • I've been a client of Austin Frye's for over 10 years. In that time, he's handled my estate/trust planning and asset protection as well as complicated business deals. - Leslie
  • Mr. Frye recently set up a complicated special needs trust for my son and, as usual, did a great job explaining it and in putting our minds at ease about our son's future well-being. - Dr. Howard
Read More...
  • NYSBA
  • Massachusetts Bar Association
  • The Florida Bar 1950
  • CFP
  • Florida Bar Elder Law Member
  • Academy Of Florida Elder Law Attorneys
  • Florida bar Business law Member
  • NAELA National Academy of Elder Law Attorneys, Inc.
Email Us For a Response

Contact Us For Personal Attention To Your Legal Matter

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Location

Get In Touch With Us
20900 W. Dixie Highway
Aventura, FL 33180

Toll Free: 877-421-5473
Phone: 305-508-5749
Map & Directions