Are You Prepared for an Estate Tax Sunset?
Presented by Marc Aarons
The federal estate tax threshold rose to $25.84 million in 2023 for married couples and $12.92 million for individuals, as part of the Tax Cuts and Jobs Act (TCJA). Like several TCJA provisions, the higher estate tax limit is due to sunset in 2025. Barring congressional action, the exemption amount will return to about $6.8 million, adjusted for inflation, in 2026. Similarly, the current 40% maximum gift and estate tax rate will increase to 45%.1
For high-net worth individuals, this could influence wealth transfer strategies. Although this sunset is coming, the good news is that it’s still a few years away.
And there’s more good news: your financial professional can help you with your estate strategy, regardless of whether Congress decides to maintain the current threshold. Now may be an excellent time to get together and start thinking about your post-2025 strategy. I look forward to your call.
Marc Aarons may be reached at 714-887-8000 or marc@ocmoneymanagers.com
www.ocomoneymanagers.com
MMI Disclosure: The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
- USBank.com, 2023
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