The current estate and gift tax exemption of 2024 is $13,610,000.00 (or $27,220,000.00 for a couple). There is still a step-up in basis for inherited property and assets, and the annual gifting limits are higher than ever at $18,000.00 (or $36,000.00 for a couple) per beneficiary. Parents could gift their five adult children $18,000.00 to each child from each parent (or $36,000.00 to each child for a total of $180,000.00).
Under current law, the estate tax exemption and gift levels will reduce in 2025. Unless the legislature takes action to extend the current amounts, the law will reduce the estate and gift exemption levels to $5,000,000.00 (indexed for inflation so likely somewhere around $6,500,000.00). Although the Biden Administration set forth a series of proposals to pay for the Build Back Better Act early on that included reducing the estate exemption to as low as $3,500,000.00 per person (or $7,000,000.00 per couple), getting rid of the step-up in basis which would trigger capital gains on inherited assets, and capping annual gifting to a total of $20,000.00 in a year, it does not appear likely that any of these will move forward.
If you have a taxable estate or will have a taxable estate, you should consult with your financial advisor and an estate planning attorney to see what planning can be done to provide the maximum level of protection and consideration for your future. Because we do not know what the future holds, we do not recommend sheltering all of your assets, but we do advise caution and thoughtful solutions. The best course is to look at your goals, your assets, and find the plan that works for you now and provides a good outlook for your future as well. There are many techniques that can allow for asset protection but still provide flexibility.
Grissom Law, LLC can work with you to find the right solution for your needs. From taxable estates, to modest assets, we work with clients in all walks of life. Estate Planning is about providing for the needs of you and your family. Call us at 678.781.9230 to schedule a time to meet and discuss your needs.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney-client relationship between you and Grissom Law, LLC.