“We first look to quantify how much clients need to retain in their estates to fund their lifestyles, [the] ‘core capital.’ Assets in a client’s estate above this amount determine their capacity to give,” Popernik said. Clients who can transfer their remaining federal exemption to a trust for the benefit of spouse or descendants should try to complete these transfers before proposed changes take effect “and consider ways to avoid future gifts to the trust if the grantor trust rules change."
“It’s probably still safe to execute a grantor trust strategy before the end of the year and grandfather them in,” Zuzak said. “After that, non-grantor irrevocable trusts would be the only real option and that comes with issue of making sure the trust can stand on its own.”
“I’ve heard that some planners and some trust companies have already closed the door to new business,” Carbone added. “There really is not a moment to spare.”