Every four years the lead-up to the presidential election ignites serious discussion about potential changes to estate planning laws. Presidential politics are generally quite different between the two major parties, and once in office, both are eager to implement laws that reflect the ideological differences between them. This is aptly demonstrated by the party’s approach to protecting and passing down wealth.
Traditionally, Republican candidates advocate financial policies that favor issues like asset protection, increasing gifting limits, and reducing tax liabilities when distributing wealth to heirs. On the flip side, Democratic administrations are less interested in changes to laws that put tax protections in place for high net worth individuals.
Take the Guarantee
Because politics plays a major role in estate planning laws, it is difficult to predict what the tax code and estate laws will look like from one Presidential term to the next. The two parties have very different agendas regarding the capability of persons holding significant assets to protect their wealth from future liabilities, such as those brought about by nefarious lawsuits.
The fluctuating nature of financial policies is a compelling reason to consult your estate planning attorney about the best way to protect your assets from this outcome. Putting a plan in place before the new tax laws go into effect in 2022 will help you protect your assets, your family and legacy for generations to come.
One of the best asset protection vehicles at your disposal is a trust, but you will need to read the fine print; all trusts are not created equal.
Put Yourself in a Win/Win Situation
California attorney, Jeffrey M. Verdon, has extensive experience working with high net worth individuals to create and implement an asset protection plan. One of the best investment options available for this purpose is a win/win trust known as the “Heads You Win, Tails You Win” or HUWTUW trust.
California state law does not include concessions for asset protection planning, but there are a number of states that do. Regardless of where your assets reside, you can establish a HUWTUW trust within a state that does have favorable laws on the books. Get ahead of the game by initiating or reviewing your estate planning before the 2024 election.