We’re in the midst of a favorable environment when it comes to taxes and estate planning, but just because it’s good now doesn’t mean it will be good forever.

Jim Puplava recently interviewed estate planning expert Elizabeth Morgan who explains how taxes can be affected by the political climate and changing political administrations. She discusses the effect of sunsetting exemptions, the annual exclusion, having an exit strategy, which states are better for sheltering assets, using asset protection trusts, and much more.

Elizabeth asserts that the best gift you can give your family is a good estate plan.

Planning to Protect Your Assets

In the past, taxpayers have used limited partnerships and limited liability companies (LLCs) to reduce exposure when it comes time to settle estate distributions.

But now, in 2018, the estate tax exemption is $11,180,000, which means most individuals have less to worry about when it comes to setting up more complicated structures to limit tax burdens on estates.

However, it all depends on the value of your estate, Morgan noted, and limited partnerships are still being used significantly, especially for those who are in that very top tier of estate value.

It’s also important to note that currently, the $11,180,000 exemption sunsets in 2025.

“I think that really now the use of these entities is most important from an asset protection standpoint, rather than an estate planning standpoint,” Morgan said. “That being said, if you look back at our history with our concept of a lifetime exclusion, it’s always possible that that exclusion amount could drop. I always tell my clients that while it may not be necessary now, using these vehicles for asset protection reasons remains incredibly valid. It may be that at some point in the future, the estate planning becomes important again.”

Revocable Trusts May Not Protect Your Assets

Currently, if you’re a high-net-worth individual, and you’re concerned about your estate’s value exceeding the $11,180,000 exemption, you’ve probably considered a revocable trust to help protect your estate.