One of the pillars of President Trump’s presidential campaign was the repeal of the federal estate tax. The estate tax is viewed by some as penalizing the wealthy for being successful by subjecting their assets to double-taxation; most likely their wealth was subject to ordinary or capital gain tax during life and now it is subject to a second tax at death. While there are arguments that small family businesses are the most detrimentally impacted by the estate tax (i.e., the “family farm”), proper planning through the use of certain types of trusts (as well as other legal and financial techniques) help alleviate some if not most or all of the pain attributed to the federal estate tax.
However, what if the estate tax disappeared? Are trusts still needed? The following article describes areas where trusts can still be useful even if the federal estate tax is gone. And, remember, both Washington and Oregon still have their own estate tax structures . . . I highly doubt that the States will let go of a potential revenue source.