- The federal estate tax exemption is subject to change - With the passing of the Tax Cuts and Jobs Act of 2017, the federal estate tax exemption doubled to $11,580,000 in 2020. This increase is temporary, though, and the exemption is scheduled to revert to approximately $6.59 million in 2026. Are you aware of today’s increased exemption thinking about what might happen when that drastic decrease occurs? Are you also taking the potential growth of their estates into consideration?
- The impact of state estate taxes and inheritance taxes - Even if a decreased federal estate tax exemption will not be a concern for you, have you considered the impact state estate taxes and inheritance taxes might have on your wealth transfer plans? It may come as a surprise to you that currently there are 17 plus DC states that impose an estate or inheritance tax.