Estate Tax Loss

Under the new Trump Estate Tax Law, many of the clients we talk to feel like they don’t have an estate tax problem. “Estate taxes are so high, and I have a federal exemption that for a husband and a wife, can go up to $22 million, it’s indexed, so I’m not worried about it.” 

But the reality is that this tax law is due to sunset. What that means is if the laws have not changed by December 31, 2025, that $22 million will revert down to approximately half of what it is in 2025. These things are indexed annually for inflation, so they go up a little bit, but it is going to go from $22 million down to $11 million-plus the inflation.

A recent House bill, however, was introduced to lower the exemption now. Chances are because of the current economic situation and the legislative environment that is not going to pass, but if we have a new president and the administration changes, you could see that the estate tax law will once again be changed. 

I urge everybody who thinks that they may not have an estate tax problem, to plan with the perspective that the exemption will not be this high forever. It is better to plan with that in mind and take advantage of the current estate tax laws by making significant gifts if you can afford to today, and also plan with the idea that just because you are only worth $13 million, doesn’t mean you shouldn’t do good estate planning. And that’s what we do, so give us a call. Let us know how we can be of help.

Have a happy and healthy New Year. 

New House Bill Aims to Lower Exemption Amount

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS.  Strategic Wealth Advisors Network and Gassman Financial Group are not affiliated with APFS.

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