With Donald Trump heading back to the White House, significant shifts in tax policy are on the horizon, particularly for estate planning. Even if you are not quite a billionaire like the president-elect, it's crucial to understand how potential changes to the Federal Estate Tax could affect you.

As you may recall, in 2017, Trump's administration passed the Tax Cuts and Jobs Act (TCJA), which temporarily doubled the estate and gift tax exemption amounts.  In 2025, the estate tax exemption will peak at $13.99 million dollars per person.  That's $27.98 million for a married couple!  This huge exemption helped many families pass on tremendous wealth without incurring federal estate taxes. However, this increase is set to sunset at the end of 2025. Without further legislative action, exemption limits will revert to pre-2018 levels, likely increasing the estate tax burden on many estates.

Given Trump's re-election, there is speculation he may pursue legislation to extend or make permanent the higher exemption levels.  After all, as a billionaire himself, Trump and his family stand to directly benefit from continued increases in the estate tax exemption. This could preserve higher tax thresholds, which would be a significant advantage for those with substantial estates. However, it is essential to remember that tax policy can be unpredictable, and estate tax laws may still change rapidly.

The anticipated sunset of these tax exemptions makes it crucial to review your estate plan. At Finlay Law Group, APC, we specialize in helping Californians avoid probate and navigate complex tax law changes. An estate plan review can reveal potential vulnerabilities and adjustments to optimize your estate under current and future tax laws. By proactively adapting your strategy, you can minimize your estate's exposure to increased taxes and protect your legacy.

Reach out to our office today to schedule a review. Let us help you align your estate plan with the latest developments to safeguard your assets for generations to come.

Disclaimer: The above information is intended for information purposes alone and is not intended as legal advice. Please consult with counsel before taking any steps in reliance on any of the information contained herein.