global Tax Act Now: Maximize Your Estate Planning Benefits Before 2026 January 14, 2025 The clock is ticking on the current lifetime estate and gift tax exemption, which is scheduled to drop significantly on January 1, 2026. If you haven’t reviewed your estate plan recently, now is the time to act. With the lifetime estate and gift tax exemption set to decrease after 2025, now is the time to take strategic steps to maximize your estate planning benefits. Let’s dive in. What is the lifetime estate and gift tax exemption? Check out our blog, Plan Ahead for the Sunset of the Lifetime Estate and Gift Tax Exemption. As of 2025, an individual can give away or transfer up to $13.99 million in assets without facing estate or gift taxes, and for married couples, the combined exemption is $27.98 million. The exemption is scheduled to revert back to 2017 levels (indexed for inflation) under the Tax Cuts and Jobs Act (TCJA). There are several strategies you can take advantage of to start planning for the sunset, including: Spousal Lifetime Access Trusts (SLAT)Credit shelter trusts (CST)Whole life insuranceBusiness valuations What can you do to ensure you are maximizing savings for 2025? Review your estate plan: Ensure it reflects your current goals. Does it meet your financial goals and family needs? Circumstances like changes in family dynamics, asset values or tax laws may require updates to trusts, wills or beneficiary designations. Make strategic gifts: Consider using your lifetime exemption to transfer assets to heirs tax-free. This way, you take advantage of the higher limits before they potentially decrease. Moreover, gifting appreciated assets can remove future growth from your taxable estate, which can open up significant tax savings for both you and your beneficiaries. Waiting until the last minute could limit your options. Take action now to maximize your tax savings and secure your financial legacy. As always, it’s best to consult your financial advisor to optimize your plans for the new year.
