Making the Most of Federal Estate and Gift Exemptions

As of January 2021, a person in the United States is permitted to pass on $11.7 million and a married couple can distribute $23.4 million without being subject to any estate or gift taxes. A sunset clause written into the Tax Cuts and Jobs Act of 2017 as well as the results of the 2020 elections, however, place this amount in danger of being substantially reduced.  If financial circumstances justify utilizing this exemption, you should consider taking these actions now so you do not end up facing substantial estate taxes on your assets in the future. The Risk that These Exemptions Will Disappear These current exemptions are in danger of going away both due to exiting tax law as well as the aftermath of the 2020 elections. Not only is it critical for those impacted by these exemptions to understand they will go away, but it is also necessary to perform adequate estate planning. The Tax Cuts and Jobs Act which was passed in the final days of 2017 increased the exemption from $5 to $10 million.  The Act contains a sunset provision, as well. Provided that no actions are taken to extend the length of or keep this exemption, [...]