Estate planning news 2018

Here are some notable estate planning news stories from 2018:

  1. Tax Cuts and Jobs Act (TCJA): The TCJA, signed into law in December 2017, had significant implications for estate planning in 2018. The new law doubled the estate tax exemption to approximately $11.2 million per individual, effectively exempting most estates from estate tax. However, the exemption is set to revert to its pre-TCJA level of $5.6 million in 2026 unless Congress extends the changes.
  2. Estate Tax Repeal Efforts: Despite the TCJA's changes, some lawmakers continued to push for full repeal of the estate tax. In 2018, the House of Representatives passed a bill to repeal the estate tax, but it did not advance in the Senate.
  3. Gift Tax Exemption Increase: The TCJA also increased the annual gift tax exemption to $15,000 per individual, up from $14,000 in 2017. This allows individuals to give more to loved ones without incurring gift tax liability.
  4. 529 College Savings Plans: In 2018, the IRS issued new guidance on 529 college savings plans, allowing individuals to use these plans to pay for K-12 education expenses, in addition to higher education expenses.
  5. Estate Planning for Cryptocurrencies: As cryptocurrencies like Bitcoin and Ethereum gained popularity, estate planners began to address the unique challenges of planning for these assets. This included issues like how to value cryptocurrencies for estate tax purposes and how to ensure that beneficiaries can access these assets after the owner's death.
  6. Digital Estate Planning: The rise of digital assets, such as social media accounts, online storage accounts, and cryptocurrencies, has created new challenges for estate planners. In 2018, some states began to pass laws addressing the management and distribution of digital assets after death.
  7. Estate Tax Audits: The IRS announced in 2018 that it would be increasing its efforts to audit large estates and trusts. This included a new audit program targeting high-net-worth individuals and their advisors.
  8. Charitable Giving Incentives: The TCJA introduced new charitable giving incentives, including a 60% limit on the charitable deduction for cash contributions to public charities and a 20% limit on the charitable deduction for cash contributions to private foundations.
  9. Estate Planning for Blended Families: As divorce rates remained high, estate planners began to focus on the unique challenges of planning for blended families. This included issues like how to ensure that step-children and other non-biological heirs are provided for in the estate plan.
  10. Estate Planning for Small Business Owners: Small business owners faced unique estate planning challenges in 2018, including how to transfer ownership of the business to the next generation and how to ensure that the business remains viable after the owner's death.

These are just a few of the notable estate planning news stories from 2018. As the estate planning landscape continues to evolve, it's essential for individuals to stay informed and adapt their estate plans accordingly.