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The Tax Cuts and Jobs Act of 2017 (TCJA) made some of the most consequential tax law changes in decades. The most significant provision temporarily increased the unified lifetime estate and gift tax exemption amount, which is the maximum sum that an individual can shelter from federal estate and gift taxes. In 2024, this exemption amount is $13.61 million per individual, or $27.22 million per married couple, and will be adjusted for inflation in 2025. Unless Congress takes action, the TCJA provisions for individual income, estate, gift, and generation-skipping tax changes will revert to pre-2016 levels. Additionally, the current unified lifetime estate and gift tax exemption will only be available to taxpayers until December 31, 2025, and it will revert to $5 million (adjusted for inflation) on January 1, 2026. The table linked below summarizes current tax laws in 2024 along with potential tax law changes that could substantially affect individuals in 2026. | |
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As the TCJA provisions sunset looms, we encourage you to review your current plan with your financial, tax, and legal advisors to determine whether you are properly positioned for potential tax law changes. There are different strategies that you can utilize to help yourself and your family preserve and pass wealth efficiently, while also taking advantage of lower tax brackets that are currently available. The future remains unpredictable, as Congress may yet amend some provisions mentioned above and write them into law, but it is always a good strategy to be prepared for any outcome. Please contact the office to discuss potential solutions that will be most suitable for you. |
Maximizing Benefits Before Tax Cut Provisions Expire
