Estate planning is a reoccurring process that should never become static, especially amid big political changes and policy alterations. Just like you would never walk away from investments for 30-years and hope that they were lucrative in the end, estate planning is noticeably similar.
Following big political changes through the 2018 midterm elections and the results, what do these changes mean for your estate planning? As our country does so splendidly, we are staring down a split government yet again, which assuredly means slower law passages, regulatory installations, and tax changes that were once championed by a single-party rule the past 2-years.
In order to stay prepared, we’re going to look at the key takeaways below:
The Congressional Split:
Prior to the election, the Republicans held both houses of Congress. Now, the Democrats are the majority party in the House of Representatives, and the Republicans furthered their hold on the Senate. When it comes to the 2017 Tax Cuts and Jobs Act, pushed by Republicans, it is now up in the air as to how both houses will work together on its passage. Republicans will no longer be able to pursue budget reconciliation. As a result, the passage of the original bill will follow a much longer timeline before the Democrats agree to it.
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 this new Congress convenes in January, we will begin monitoring their response to this bill. But, if politics continue to be as partisan and divided as ever, it’s safe to say, we are going to have to wait a while.
Remember the Constant
Amid political uncertainty and turmoil, our country was designed to remain vigilant and persistent. That’s why there are so many foundational constants in estate planning that you should realize before panicking. Here at the Ashcraft Firm, we stay up to date and informed on all major political changes and shifts so you don’t have to.
We want you to grow and retain your wealth, which begins with real-time state planning. Remember: no one can legislate away irresponsible spending, divorce, lawsuits, bankruptcy, sibling rivalry, and the many non-tax reasons to utilize estate planning. We just work to stay ahead of he political curve, securing you any advantages that are created in the changing of financial and tax laws and codes.
So, is your current estate plan able to succeed despite the political changes? Is it customized for the U.S. legislative landscape? We’re ready to review it with a magnifying glass. Do not hesitate to give our team a call today.