Be Prepared for 2025 Increase in Estate Taxes

In 2017, President Trump enacted the Tax Cuts and Jobs Act which brought significant changes to the tax code. These changes included a significant increase in the federal estate tax exemption. This year's exemption reached at $13.99 million per person, an all-time high. However, in 2026, the estate tax exemption will revert to pre-TCJA levels, which are almost half of this amount, or approximately $6.8 million after being adjusted for Inflation. Estate tax rates are also expected to rise from 40% to 45%. So if your estate is worth $30 million, and you're single, your heirs will be facing an estate tax obligation of about $10.44 million.

The value of all properties that you own at the time of death is subject to estate taxes, including:

• Your real estate properties

• Your financial accounts, such as checking, savings, money market, and certificates of deposit accounts

• Proceeds from your life insurance policy

• Roth and IRA accounts at 100% of their value

• Personal belongings, such as jewelry and vehicles

• Business interest

To take advantage of the current low estate taxes, act now and schedule your appointment to discuss your estate and gift tax planning strategies.