“The article offers a timely reminder of the fleeting opportunity created by the Tax Cuts and Jobs Act to maximize wealth preservation before the current elevated estate and gift tax exemptions sunset in 2025. It effectively underscores the importance of acting early to capitalize on the temporary exemptions, which allow individuals and families to transfer significant wealth while minimizing future tax exposure.
The strategies discussed, such as gifting, irrevocable trusts, and charitable contributions, align with proven methods for reducing taxable estates. The emphasis on removing appreciating assets from the estate now is particularly prudent, as it allows for future growth outside the taxable estate. For those who haven’t revisited their plans recently, this article serves as a valuable call to action. The potential for last-minute complications as the 2025 deadline approaches reinforces the need for careful, deliberate planning sooner rather than later. Taking steps now can help avoid rushed decisions and ensure a thoughtful, flexible approach to preserving wealth.”
George Finn, Rose Law Group senior transactional and estate planning attorney
By USA Today
The end of 2025 feels so distant. But the time between now and then will pass in the blink of an eye — just ask any tax planner.
The Tax Cuts and Jobs Act (TCJA), passed in 2017, created a golden opportunity for families to preserve and maximize the wealth they pass on to future generations through smart estate planning. But it’s an opportunity with a ticking time limit.
At a glance, the Tax Cuts and Jobs Act temporarily doubled the unified gift and estate tax exemption from $5.6 million per individual to $11.18 million ($13.6 million in 2024, after adjusting for inflation.) For a married couple, this allows up to $27.2 million to be sheltered from federal estate and gift taxes. However, these exemptions are scheduled to expire at the end of 2025. When they do, the exemption level will revert to about $7 million per individual (adjusted for inflation).1
