Salt Deduction

How does the SALT deduction cap affect my estate planning?

The SALT (State and Local Tax) deduction cap limits how much you can deduct for state and local taxes on your federal return, which can increase your overall tax burden. This higher tax liability may reduce the assets available for your estate, making tax-efficient strategies like trusts more valuable. Families in high-tax states often explore moving assets into trusts or relocating to states with lower tax burdens to preserve more wealth for beneficiaries.