Seize the opportunity to make the most of your estate plan while the current laws are still in place.

  • Today’s tax law environment serves as a good reminder to review your estate plan to be sure that it is consistent with your current goals and is flexible to promote tax efficiency. 
  • The tax laws are scheduled to sunset after December 31, 2025,or potentially sooner with a new administration in the White House.
  • Now is the time to take advantage of valuable planning opportunities, particularly the high federal exemption amount.

In late 2017, both Houses of Congress and President Trump passed sweeping tax legislation impacting virtually all areas of federal tax law. These laws are due to sunset on December 31, 2025; however, with a new administration in the White House, change could come sooner.  

Take advantage of today’s high federal exemption
The most impactful tax law change for estate planning purposes was the increase in the federal estate, gift, and generation-skipping transfer (GST) tax exemptions (collectively, the federal exemption) for each individual.The federal exemption more than doubled and now sits at $11.7 million per individual for 2021. The high federal exemption provides a golden opportunity if your net worth is above the previous exemption to enhance your estate plan and preserve more wealth for your heirs. As a high-net-worth individual, it is critical to work with your advisors to take advantage of estate tax planning opportunities now that could help mitigate the negative effects of federal estate, gift, and GST taxes on your estate.

This article is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service. It is not designed or intended to provide financial, tax, legal, investment, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of a professional advisor should be sought.  

 

Download Article