Estate tax stability post-OBBBA triggers planning shifts
Key Questions
What changes did OBBBA bring to estate taxes?
OBBBA made TCJA permanent with $15M/$30M exemptions, QBI, and SALT adjustments, stabilizing estate taxes post-cliff. This triggers planning shifts.
What common estate planning myths exist?
Myths include unfunded trusts, decanting issues, $1T crypto losses, and misconceptions about irrevocable trusts. Bank of America warns families err on trust flexibility.
What IRS red flags should be avoided?
IRS audits target Form 5472 non-filers, common mistakes triggering scrutiny, and crypto estate mishandling. Proper reporting prevents issues.
How does real estate aid estate tax planning?
UBS notes RE solves tax problems via appreciation, income, QBI, and 1031 exchanges. It's key for wealth preservation amid state hikes.
What planning tools are recommended post-OBBBA?
NV DAPTs, ILITs, RUFADAA, prenups, and checklists for executors/nextgen. QCDs and 401(k) rollovers save taxes for retirees/high earners.
Why do living trusts often fail?
Most living trusts fail without proper funding or tax-proofing, per Suze Orman. Families delay planning, leading to probate issues.
How to handle crypto in estate planning?
Crypto estates risk $1T losses without proper planning; include digital assets in wills and use specialized tools for transfer.
What state trends affect estate planning?
State tax hikes and exodus (e.g., CA billionaire tax) push DAPTs and RE strategies. Nextgen relationships build via tax season docs.
OBBBA TCJA perm $15M/$30M/QBI/SALT; myths (trusts unfunded/decanting/crypto $1T lost/NV DAPTs/ILITs/RUFADAA); IRS red flags/audits/Form 5472; UBS RE hacks; checklists executors/nextgen/prenups amid state hikes/exodus.