Trusts & Estates

By Jeramie J. Fortenberry, JD, LLM | Director of Education, WealthCounsel

Alert: Congress Passes Sweeping Tax Reform Bill

The most significant tax reform package of this generation is now awaiting the President’s signature and is widely expected to be signed into law at any time. The new tax law changes the tax planning landscape, creating both pitfalls and opportunities for attorneys and the clients they serve. It is critical for business and estate planning attorneys to understand these changes and how they affect their clients.

In this Thought Paper, Jeramie Fortenberry, JD, LLM, provides actionable guidance for planning under the new and different tax landscape. It includes a discussion of:

• The new (but temporary) deduction for pass-through businesses and the related limitations that apply
• Other significant changes to pass-through businesses, including loss limitations, repeal of the technical termination rules, and changes to electing small business trusts (ESTBs)
• The flat 21-percent tax rate that applies to C corporations and how it affects the choice-of- entity decision
• Limitations on common business deductions, including interest paid or accrued by businesses and net operating losses
• Changes to individual taxation, including the doubled estate tax exemption and what it means for planners