Salt Deductions
Understand how SALT deductions impact estate planning and learn strategies to maximize tax benefits while protecting your family's legacy.
How do SALT deductions influence estate planning decisions?
SALT (State and Local Tax) deductions can significantly affect estate planning by impacting the amount of taxable income that can be reduced through deductions of certain local taxes. This can be advantageous for those in high-tax states, as it can alter the efficiency of various estate planning tools like trusts or gifting strategies. However, the recent caps on SALT deductions implemented under the Tax Cuts and Jobs Act have limited their usefulness, requiring more strategic planning to maximize potential tax savings and preserve one's estate effectively while adhering to new tax laws.
