The Current Estate and Gift Tax Law May Be Changing Soon!
Do you know your net worth and how it could influence your potential estate tax liability? Who stands to receive your assets when you die – your loved ones… maybe a charitable organization… or will a large share go to the IRS? These are questions we certainly don’t like to think about as they are sometimes difficult topics for you and your loved ones. But, you should discuss them… and those conversations should start now!
The countdown has begun on temporary estate tax laws enacted as part of the Tax Cuts and Jobs Act of 2017 regarding your federal lifetime estate exemptions. Current estate and gift tax exemptions of $13.61 million (for single individuals) or $27.22 million (for married couples) are currently set to sunset effective January 1, 2026. Without any legislative changes, these historically high exemption rates are scheduled to revert back to their 2017 levels, adjusted for inflation, which is expected to only be an estimated $6 million (for single individuals) or $12 million (for married couples). Estates valued above these exemption amounts could be taxed at upwards of a 40% estate tax rate!!
Who can help you and what can you do to mitigate this potentially significant tax burden? With proper estate and gift tax planning, you can lock in place the current record-high estate exemptions and you can potentially remove the future appreciation of certain assets from your otherwise taxable estate. Nichols Cauley can help you explore asset protection strategies and develop a roadmap for legacy and succession planning of your business(es) and personal assets.
Nichols Cauley’s tailored approach working side by side with your legal team has resulted in significant estate tax savings for our clients while allowing our clients to maintain their desired level of control over their wealth and legacy assets well into the future.
With over 50 years of combined experience, our seasoned team of tax advisors specialize in estate and gift tax planning for our clients. We provide a personalized and customized strategy that offers you various options aimed at minimizing future estate tax liabilities and maximizing wealth preservation for individuals and families while in as many ways as possible, minimizing the effect of planning on your daily life and goals. Further, our valuation team can assist you with determining the value of your business(es). Nichols Cauley can also help you with funding strategies for wealth transfer taxes.
Now is the time to act! Don’t wait! We understand this can be an emotional and complex process. Take action today by reaching out to our local office or contacting your advisor to connect with our practice group and initiate your planning process well before the current estate and gift tax laws sunset.
If you’ve previously completed an estate tax plan, you should likely revisit and update your plan to reflect any life changes that have occurred since. Contact us now to begin a new estate plan or ensure your current estate plan remains current and aligned with your evolving needs.
Contact us for more information at 800-823-0117.