Family Wealth Trust Planning

The impact of wealth management on clients:
- No change to the capital gains tax (Capital Gain)
- Retention of the Net Investment Income Tax (Net Investment Income Tax)

Impacts on estate/gift taxation and trust planning:
- Doubling of the lifetime exemption amount; adjusted upward to USD 13,990,000 in 2025
- Retention of the stepped-up basis
- Individual income tax reform may affect trust income tax returns (e.g., reduced individual tax rates, limitations on itemized deductions, etc.)
- For pass-through entities, individual shareholders are granted an additional 20% deduction, but this deduction is also subject to other limitations/requirements
- The lifetime exemption is subject to a sunset provision; planning should take advantage of this window
- Trust planning: Gift Selection Factors
- If future U.S. immigration and obtaining U.S. citizenship is contemplated, adjustments for future wealth succession based on Taiwan domestic investments may allow greater flexibility. Consider, prior to immigration, adopting compliant “foreign-investment structuring” approaches to reduce potential tax costs in Taiwan.

Common U.S. family wealth planning tools: