As we watch Congress for clarity on tax reform, I am reminded of the Tom Petty song “The Waiting.” Many clients are frozen, unwilling to do any planning. However, the fact is tax law changes all of the time, and any “reform” today may be gone tomorrow. Life and death go on. The real reasons for planning transcend tax law.
You want to take care of your loved ones, and, if you have done well and have charitable goals, you want to leave something for the causes you care about. The basic structure of a will is not going to change much even if the transfer tax is repealed. You will still want to protect your loved ones from the uncertainties of this world, and possibly from themselves. So trusts will still be used for protection from lawsuits and divorce, and to create a protected family resource for lending and entrepreneurship.
In addition, I have found that, while clients may be motivated a bit by tax reasons for gifting during life, they often enjoy watching their loved ones enjoy the life experiences those gifts bring. The same is true for charitable giving.
Good planning should not be dependent on tax motivation. Good planning should not wait for tax motivation. So get on with it!
