Estate planning is an ongoing process instead of a one-time transaction. In the same way you never stop budgeting, saving, and investing in life, estate planning is a lifelong endeavor. Let’s look at some of the considerations you should make now that the 2018 midterm elections are over.
Planning in a Fluctuating Political Climate
Estate plans must change whenever you experience major life changes, such as marrying someone new or welcoming a child to the family. But you also need to respond effectively to large-scale changes, such as legislation which impacts the way assets are taxed. Regardless of your political leanings, it’s safe to say the United States is continuing to experience a period of dramatic political and legal change.
Elections like the 2018 midterms — and the resulting political change — could lead to fear and anxiety about how the impact of new laws and tax policy will affect your life. But you can offset that uncertainty by focusing on making the smartest estate planning decisions possible in light of the results. Rest assured we are watching the situation unfold and will keep you informed about relevant legal and tax changes that could affect you and your loved ones.
The Midterm Split: Democrats Won the House, Republicans Kept the Senate
Before the midterm elections, it was unclear how legislation like the 2017 Tax Cuts and Jobs Act would be affected. The House and Senate split between Democratic and Republican control. So, we aren’t sure how well the parties will work together on a common agenda.
What does a divided federal government mean for you? The budget reconciliation strategy the Republicans used to pass the Tax Act will no longer be as viable an option, which could slow additional legislation the Republican-controlled Senate proposes.
According to Kiplinger: “What is likely off the table with a Democratic House and Republican Senate is tax reform 2.0, which would make certain provisions of the 2017 tax law permanent, locking in individual and small business tax cuts. Social Security and Medicare reforms, which might have helped offset the effect of the tax cuts, are also likely off the table.”
When the new Congress first convenes in January, we will continue to monitor proposed legislation to keep you informed about potential risks and opportunities relative to your estate plan.
Some Things Are Constant, No Matter Who’s in Charge
Amid so much political uncertainty exists many foundational constants in estate planning. These remain no matter who is in charge politically or what changes have been made to the tax code. Part of your financial wellness team, we can guide you in all things estate planning.
Do you want to grow and retain your wealth? Exercise careful estate planning — regardless of which party controls Congress. Many things may change. But much will remain the same. No one can legislate away things like irresponsible spending. Divorce, lawsuits, bankruptcy, sibling rivalry, and more provide lots of reasons to plan your estate. An up-to-date comprehensive estate plan remains the best option for passing along your wealth and values to the next generation.
Will your estate plan do what you want it to do? Let’s take a look. Give us a call today (909) 608-7671.
About Skvarna Law
We can help you make important estate-related decisions. Contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. We provide legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
