Helping Clients Make Sense of the Estate and Gift Tax Exemption

Estate and Gift Tax Exemption Blog

When’s the last time you talked to your clients about their estate taxes?

If you take a comprehensive approach to planning, are you including estate tax reduction as part of your client plans? Regardless of their net worth, estate planning is a critical piece of your clients’ financial futures.

In 2018, The Tax Cuts and Jobs Act (TCJA) made considerable changes to the estate and gift tax exemption. As it relates to your clients, fewer of their estates will be subject to the 40 percent tax, and those that previously owed a substantial amount of estate tax could enjoy a reduction.

For those clients who are affected by the higher exemption amount, eMoney can help show how the increased exemption has affected their estates by modeling complex comprehensive estate plans. Techniques like generational planning, entity distribution, trusts, and gifting strategies can be modeled or recommended for clients to understand the overall impact on their plan and estate.

For clients with taxable estates that fall outside of the exemption amount, estate tax strategies and planning can still be beneficial. Showing a client a revocable trust concept to reduce probate taxes can save your average client thousands of dollars, which allows for a higher distribution to other entities.

Not sure what the future will hold? Neither are we!

That’s why eMoney gives you the option to choose whether you think the sunset provisions will take place or not. With eMoney, you have the flexibility to model two different outlooks based on their future estate-based projections.

eMoney provides an interactive and dynamic way to make estate plans come to life on the screen for clients. With eMoney’s interactive flow charts from the Distribution Center, advisors can improve decision-making for clients by simplifying an otherwise complex topic.

To learn how eMoney can help you, claim your free trial.

Connor Sung

Written By

Connor serves as the Financial Planning Group’s Supervisor and Lead Financial Planning Consultant at eMoney Advisor. In his current position he provides escalated financial planning support primarily to clients by helping them implement eMoney into their financial planning process. He also serves as a product expert and a resource for internal departments helping Sales, Live Training, Relationship Management, Communications and Development mainly. Connor attended James Madison University, where he received his Bachelor’s Degree in Finance. He earned in his CFP® designation in 2016.