Seismic shifts are brewing in the landscape of estate, gift, and generation-skipping transfer tax exemptions. These changes, initiated by The Tax Cuts and Jobs Act of 2017, brought a significant increase in these exemptions, a trend scheduled to continue through December 31, 2025, based on adjustments for inflation. As we approach this deadline, which rests only two years away, what are the implications for your current will, revocable trust, and overall estate plan?
An avenue to this question can be found in an analysis presented by global law firm Proskauer Rose LLP. Their report, titled “Personal Planning Strategies – November 2023”, provides poignant insights for legal professionals navigating this evolving terrain.
Estate and gift tax regulations have stood firm and unified since the earnest passage of The American Taxpayer Relief Act of 2012. This stasis, however, was first disturbed by the Tax Cuts and Jobs Act of 2017, raising exemptions from estate, gift, and generation-skipping transfer taxes. A generous reprieve for many, these exemptions are scheduled for further increments until the end of 2025.
As we draw closer to this approaching horizon, it is imperative for legal professionals to duly consider these shifts’ far-reaching implications on various personal planning strategies and their clients’ wealth management.
While the teeth of these changes have yet to fully sink in, legal professionals are advised to remain vigilant, equipping themselves with current information, so they may adroitly navigate this unfolding landscape in their clients’ best interest.