For individuals and couples with a high net worth and a significant amount of assets, it is essential that you look at all ways to ensure your estate goes to your heirs and not to Uncle Sam.
After all, at the end of 2025, the 2017 Tax Cuts and Jobs Act, commonly known as the Trump Tax Law, will most likely expire. Along with that expiration is a significant exemption for estate taxes that could be cut in half.
Plus, depending on who is in control of the federal government after the election, the estate tax exemption could decrease even further.
Included in that is a significant reduction in the estate tax exemption, reducing the amount one can pass on to heirs by more than $7 million.
Plus, depending on who is in the White House and who controls Congress, the exemption could be much lower.
One way to help lower the tax burden, allowing your heirs to keep more of your estate is by utilizing the lifetime gift exemption in the next two years.
The attorneys at The Orlando Law Group can work with you to find ways to limit your estate’s tax liabilities, regardless of who is in office.
Why should we act now?
We’ve discussed this in other articles, but it will be very difficult to extend the estate tax exemption past 2025, which is set to sunset at that time. That is because the exemption is not something easily overturned.
Right now, the lifetime gift exemption is $13.61 million for an individual and $27.12 million for a couple. On January 1, 2026, that number drops back to $7 million for an individual and $14 million for a couple.
Plus, Kamala Harris has said she would like to lower that even further if she wins the November election
The time to act on your estate plan and the transfer of any wealth accumulated must happen soon to ensure you are protected.
How does the lifetime gift exemption work?
Read more.
The Orlando Law Group
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Jennifer Englert Schmitt Founder and Managing Partner
- January 01, 2025
- (407) 512-4394
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