Update, September 30, 2026: The estate tax sunset discussed below did not take effect. The One Big Beautiful Bill Act, signed July 4, 2025, permanently set the federal estate and gift tax basic exclusion amount at $15 million per person for 2026, indexed for inflation in later years, and kept the top federal income tax rate at 37%. The original article from November 2024 appears below for reference and no longer reflects current law.
Estate planning is still worth revisiting. New York has its own estate tax with a much lower exemption than the federal amount, and beneficiary designations, account titling, and trust documents may need review after a change in family circumstances. If you’d like to talk through your situation, schedule a 15-minute introductory call.
This material is for general information only and is not intended to provide specific tax or legal advice. Consult your tax and legal professionals regarding your individual situation.
Original article (November 18, 2024):
Did you know the Tax Cuts and Jobs Act is scheduled to sunset in 2026? Here’s what’s at stake if the act is allowed to expire: for wealthy families, the $27.22 million federal estate tax exemption (as of 2024 for a married couple) could be cut in half, and the top income tax rate would revert from 37% to 39.6%. It may not be time to shift gears, at least not yet. Congress has a long history of extending or replacing expiring tax reforms with similar bills. The best place to start may be a conversation with your financial professional to evaluate your situation and make a plan considering multiple scenarios. If this estate tax sunset might impact you or your family, let’s not wait until 2026 to start the conversation! The sooner we connect, the better I’ll be able to answer your questions and help make a plan. |