The estate tax and gift tax exemption is $11.58 million per individual, (up from $11.4 million in 2019). This means that an individual can leave $11.58 million to heirs and pay no federal estate or gift tax, while a married couple can shield $23.16 million. This doubled exemption remains in effect until December 31, 2025, at which time the law sunsets and the exemptions revert back to the $5 million level, ($10 million per couple). Indexed for inflation.
Democratic presidential hopefuls say they’ll bring it back to its 2009 level of $3.5 million, with a graduated tax rate up to 77%, compared to today’s flat 40% rate.
IRS has clarified the claw back rules. So planning now is the key to success!
There are countless issues that affect the daily movement of the financial markets. The volatility of these issues can cause clients to lose sleep at night. However, not making an estate plan is often the most overlooked and biggest risk that clients can face.
To maintain a desired standard of living both for the clients and their heirs, it is imperative to have the correct estate plan that will not only preserve but also grow the clients’ financial assets and continue building generational growth.