Major Estate Tax Law Changes on the Horizon
By Melissa A. Stewart, Partner
Keep your eye on the sunset, that is, the sunset of major estate tax law changes on the horizon. On December 31, 2025, the 2017 tax reform law expires, leaving taxpayers to revert automatically on January 1, 2026, to the rules in effect for 2017. There are many major tax changes, but the ones affecting estates are perhaps the most dramatic. People who die in 2024 do not pay estate tax if their estate is valued at $13,610,000 or less, but that number will decrease to $5,490,000, with minor adjustments for inflation. Many clients have large retirement accounts, closely held businesses and/or real estate which could suffer an increased estate tax rate of 50% or higher, meaning their families inherit less than intended.
Many people think that the recent election will mean we won’t see the sunset but that’s hard to predict. Even if Congress acts, it may not be until later in 2025, so clients would do well to be alert, informed and proactive in the event they need to change their estate plans. If you’d like to speak with an attorney about this, please feel free to reach out – don’t wait until it’s too late! Melissa has 34 years of experience in helping clients avoid or minimize estate tax and pass the maximum they can to their family members.