In 2018, as part of the Tax Cuts & Jobs Act, the gift and estate tax exemption doubled to historic levels – from $5.6 million to $11.2 million. After indexing for inflation, this year the exemption is $11.58 million, $23.16 million for a married couple, and it is currently scheduled to remain at this level through 2025.
Whether it’s due to the $4 trillion of COVID-19-fueled fiscal challenges, or a Blue Wave in November that will give Biden the power to pass sweeping tax reform, many high net worth individuals are cautious that a reduction in the exemption could be coming sooner than 2025 resulting in significant estate tax exposure for their family. Click here to read more and for a chart comparison of the major tax policy differences between the two candidates.