The new permanent $15 million federal estate tax exemption means far fewer families will ever owe federal estate tax. In fact, experts estimate that only a tiny fraction of estates will be large enough to face the tax under the new law. But that doesn’t necessarily mean trusts have become obsolete. Estate planning attorneys say many families still benefit from trusts for reasons that have little to do with taxes.
According to analysis highlighted by Morgan Lewis, the updated exemption significantly expands the amount individuals can pass on before federal estate taxes apply. That shift forces a new question into focus: do trusts still play a necessary role, or have they become optional in some cases? The answer depends on far more than just the tax number.
