To our Estate Planning clients:
At the end of 2025, the House, Senate and the White House together will have the opportunity to renew or reset the estate and gift tax exemption (currently $13,610,000 per person) or to allow the exemption to sunset. If the exemption sunsets, it may be reduced to approximately $7,000,000 per person. How this plays out will depend on the outcome of the 2024 election.
Here is what a reduction of the current exemption amount means for you:
- For some clients, there are gifting strategies that may be appropriate to consider in advance of this possible change.
- And for a subset of those clients, it may be appropriate to begin planning this year in order to obtain other advantages and opportunities next year.
- For some clients, gifting may not be needed or appropriate in advance of this possible change.
Obviously, each client's needs are unique. We encourage the periodic review of your estate plan to review changes that have occurred or may occur in the law, as well as changes in your personal circumstances. Please contact our office if you would like to discuss gifting strategies and what they would mean for your planning and your family.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
