Donald Trump made many promises along the campaign trail. Now, as the soon-to-be President Trump, he will have to determine how to keep good on his promises to cut taxes, while at the same time preserving Social Security and Medicare benefits, and providing affordable healthcare to all. With all of his proposals, the uncertainty around retirement and tax planning has never been greater.
One of the key components of the Trump campaign was comprehensive tax reform. According to his campaign website, he has called for substantial changes to the estate (death) tax structure, as well as a complete overhaul of the taxation of appreciated assets at death. With income taxes, he has pledged to reform the income tax brackets, as well as overhaul the capital gains tax structure.
Unfortunately, our deficits continue to grow at an alarming rate and will ultimately need to be addressed soon. Any potential reductions in estate or income taxes must be incorporated into the overall budget, meaning that the tax breaks may be short lived. Because of this, you need a plan that will withstand short term changes in policy.
If you’d like to learn more about what these proposed changes could mean for your retirement and estate planning, call our office for additional information.