On December 20, 2017, Congress passed the Tax Cuts and Jobs Act (the "Act") instituting sweeping changes to the Internal Revenue Code. By now, many taxpayers are familiar with the 'big ticket' changes the Act brings to the tax code. Effective January 1, 2018, the federal estate, gift and generation-skipping transfer tax exemptions double, the standard deduction for individuals nearly doubles, personal exemptions are repealed, and the top ordinary income tax rate for individuals and trusts decreases from 39.6% to 37%, and the top corporate tax rate falls from 35% to 21%.
An exhaustive list of the changes implemented by the Act is beyond the scope of this Alert. This Alert is intended to provide a brief summary of the key provisions of the Act that are most likely to impact wealth preservation and estate planning goals. Where applicable, planning suggestions are provided, however, the changes to the tax code are numerous and will affect each taxpayer differently. We welcome the opportunity to discuss the impact of the Act on your estate planning goals and recommend that you also discuss planning opportunities with your accountants and financial advisors.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.