After failing to repeal the Affordable Care Act for now at least, the Trump administration and Congressional Republicans have set their sights on tax reform.
The first major item on the agenda for the new Trump Administration and the Republican majority in Congress was to repeal Obamacare. However, with the effort to accomplish that currently stalled in a divided House Republican caucus, they are now turning their attention to a major effort on tax reform.
That could lead to very uncertain times for the tax planning portion of estate planning, as the Wills, Trusts & Estates Prof Blog points out in “Trump Administration Sets Sights on Tax Reform.”
It was previously expected that part of the tax reform effort would include a repeal of the estate tax. However, it is now uncertain whether that will remain on the table. It was also expected that repealing Obamacare would give Congress approximately a trillion dollars in total savings with which they could partially fund tax cuts.
With those savings no longer available, either some tax cuts need to be scrapped, revenue needs to be raised elsewhere or the federal deficit needs to be allowed to greatly increase.
If Republicans cannot agree on which of those things to do, they will need to compromise with Democrats to get anything passed and dropping the estate tax repeal is a potential olive branch.
Even though the focus has shifted to tax reform, nothing might actually be done for a long time.
The last major overhaul of the tax system was the Tax Reform Act of 1986. That legislation only passed after a long multiyear process, despite bipartisan support for the reforms.
The future of the estate tax could be in doubt for a long while.
Reference: Wills, Trusts & Estates Prof Blog (April 3, 2017) “Trump Administration Sets Sights on Tax Reform.”
“On the threshold of retirement, we finally decided to quit thinking we could self-prepare the requisite documents. We had previously had only a very simple will. We needed the necessary legal (including updated will) & health care docs but didn’t want to deal with the time & complication of legalese. Cindy made the process relatively painless. She took the time to explain and answer questions without trying to upsell services. We were done in 2 meetings plus the reading of emailed drafts. In addition to preparing the documents, Nelson Eldercare will be there when our adult children need advice on executing the plans we’ve put in place.So glad it’s behind us and would recommend Cindy and her helpful staff.”
Cindy and her company treat their clients like family. Nelson’s offers clear, direct, and honest guidance in planning for your families security and future. No one wants to actively sit down and make these decisions, but Nelson’s makes this process seamless. I was so impressed with their willingness to answer all questions big or small. So glad I made the decision have them help my mom and dad and now me. You can’t go wrong with Nelson’s Elder Care Law.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.