Thoughts and musings from my desk to you.

Estate Tax Considerations

Back in 2017, Congress made changes to the tax code via the passage of the Tax Cuts and Jobs Act (TCJA). One of its provisions raised the Lifetime Gift Tax Exemption, the amount of assets each person can pass to heirs without estate taxation. TCJA raised the exempt amount from $5.49million to $11.18million per person. Due to inflation indexing adjustments, it has escalated to $13.62million per person in 2024.

However, certain concessions were made to get the increased limits passed by the legislature. The most worrisome is the sunset rule, which stipulates that the increased exemption amount will be halved at the end of 2025 if not extended by Congress prior.