Talking Tax - Episode 74 - How the 2017 Tax Act Affects Alimony, Prenups, and Trusts (Part 1)

Summary: George D. Karibjanian and Richard S. Franklin of Franklin Karibjanian & Law PLLC join Talking Tax host Andrea L. Ben-Yosef to talk about how the 2017 tax act affects alimony by taking away the deduction for the spouse making the alimony payments. This is a revenue raiser and “the most sinister provision” in the 2017 tax act, they said. This new regime, beginning in 2019, will impact the negotiations for future prenuptial agreements, separation agreements, and divorce decrees. While there is a grandfather clause for existing divorce decrees and separation agreements, that is not the case for prenups, so those might not take into account this change in the law and possibly have to be modified. For more information, please see the article by George D. Karibjanian, Richard S. Franklin, and Lester B. Law, Alimony, Prenuptial Agreements, and Trusts Under the 2017 Tax Act (Bloomberg Tax Estates, Gifts and Trusts Journal (May 10, 2018)). The article can be found at https://www.bna.com/alimony-prenuptial-agreements-m73014477712/.