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Tax Cuts and Jobs Act (TCJA) Estate and Gift Tax Relief Set to Expire

Favorable estate and gift tax provisions are set to expire at the end of 2025. Planning starts NOW!

OVERVIEW

ESTATE AND GIFT TAX EXEMPTIONS

Among other provisions, the TCJA provided 10 years of tax relief by almost doubling the estate and gift tax exemptions from its previous levels, adjusted each year for inflation. These elevated exemptions are set to expire and be reset in 2026:

INDIVIDUALS

2017: $5.5 million

2024: $13.6 million

2026: estimated $7 million, adjusted for inflation

MARRIED COUPLES

2017: $11.1 million

2024: $27.22 million

2026: estimated $14 million, adjusted for inflation

DOES THIS REALLY AFFECT ME?

Theoretically, yes, everyone IS affected...

because regardless of individual age or estate value, everyone should have an estate plan.

ESTATE PLANNING CONSIDERATIONS

• Do you want the state to decide who receives your assets?
• Do you want specific assets to go to specific individuals?
• Do you want someone to be able to handle your financial affairs if incapacitated?
• Do you have specific guardians in mind for the care of minor children?
• Do you want to minimize costs to your heirs?
• Do you have medical directives your heirs should be aware of?

If you don't plan, someone else will.

Additional planning is needed...

for those with taxable estates in the:

• $7-14 million range (individuals)
• $14-28 million range (married couples)

because estates in these ranges will become taxable.

While inheritance tax rates are not scheduled to sunset, they are progressive:

• Taxable estates of $1-10,000: starting rate of 18%
• Taxable estates over $1,000,000: 40%

AND, planning is both urgent and critical...

for those with taxable estates:

• over $14 million (individuals)
• over $28 million (married couples)

because these estates will be subject to a considerable tax increase due to the reduced exemptions.

THE CLOCK IS TICKING...

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