March 4, 2024



By the end of 2025, when a generous Estate and gift tax breaks for the rich are about to expireseems far away — but those who want to take advantage of it could end up in dire straits if they delay.

“A lot of people want to put things aside and say, ‘Well, why don’t we wait until the end of 2024, 2025 and see what happens?'” said Abbey Flaum, the company’s managing director. Family Wealth Strategist for Homrich Berg, Atlanta-based registered investment advisor.

For U.S. individuals, currently a maximum of $12.92 million lifetime maximum There is no need to pay taxes, and the amount is doubled for married couples. Those gift and estate tax exemptions are capped at the beginning of 2026 will be halved, back to 2017 levels of around $5 million per person, plus adjustments for inflation. At the same time, the extra tax-free buffer can have a huge impact on the wealth of families who can afford to build a buffer by putting tax-free amounts into trusts.

But Fraum said waiting until the end of 2025 could be a big mistake, because by then estate planning lawyers and consultants will likely have their hands full helping many other wealthy procrastinators.

“A lot of people are setting up trusts now. Proactive clients who can really afford to do that are giving gifts now.”

Arizent, the parent company of Financial Planning, said in its report Latest report on the Great Wealth Transfer That Various options for advisors and estate planning specialists Help clients get ready for sunset. No matter which one a client decides to use, they face huge losses if they miss their deadlines.

read more: Attract the next wave of customers

Arazent reports that estates that exceed the lifetime limit “will face a tax of 40% of the amount exceeded.” “Additionally, the federal personal tax rate, which currently tops out at 37 percent, will rise to 39.6 percent after the end of 2025.”

Here are four recommendations, from Arazent research and industry experts, how guiding consultants can help clients take the next 2.5 years to truly head toward sunset.