$13,990,000 is now the exemption
The IRS recently announced that the federal estate and gift tax exemption will increase to $13.99 million for individuals and $27.98 million for married couples in 2025 due to inflation adjustments. This presents a significant opportunity for wealthy individuals to transfer assets without incurring federal taxes.
Law Sunsets in 2025
This increase stems from the Tax Cuts and Jobs Act of 2017, which doubled the estate and gift tax exemption, but is set to revert to pre-2018 levels (around $7 million) at the end of 2025, barring any legislative changes.
A Window of Opportunity
As a result, many experts advise high-net-worth individuals to take advantage of this window in time before the exemption is reduced (if that should happen). It's essential to consult with estate planning professionals to determine the best strategies for your unique situation, especially given the complex tax regulations and potential IRS scrutiny on wealth transfers that can be anticipated moving forward.
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