With significant changes to the federal estate tax slated for next year, estate planning is becoming a hot topic for family offices.
Shannon Zur, director at Vogel Consulting Group, says she is hearing from estate planning attorneys that they are already busy with clients who are updating their estate plans in anticipation of the changes.
The current lifetime estate and gift tax exemption of $13.61 million per person is slated to sunset at the end of 2025, leading some to make major gifts, or revise their estate plans, now.
“The clients are taking advantage of utilizing that exemption,” Zur says. “And then they’re also revisiting their other documents and reviewing things.”
A number of law firms, wealth advisors and advocacy groups are publishing detailed information about the pending changes. A sampling:
- Prepare for Soaring Estate and Gift Tax Exclusions and GST Tax Exemption to Close After 2025: Law firm McDermott Will & Emery offers details on gifting strategies and wealth transfer techniques.
- Why you should revisit your estate plan in 2024: UBS advises starting the process of updating estate plans this year, with links to detailed guides.
- Take advantage of opportunities to make tax-free gifts in 2024: RSM uses two different estate planning scenarios to illustrate the impact of lifetime gifts on estate tax liability.
- Give it away now? Today’s favorable estate tax is set to expire after 2025: Advocacy group Family Enterprise USA offers a Q&A on estate tax changes and options for gifting.