Our advisors utilize their experience and expertise and that of their colleagues to develop the best solutions for your complex personal and professional financial situations.
Actionable planning strategies to inform and guide your decision-making.
July 7, 2023
The federal estate tax exemption amount is currently $12.92 million per individual ($25.84 million for a married couple) and is scheduled to increase each year through December 31, 2025. On January 1, 2026, the exemption increases are scheduled to sunset. The sunset will result in the estate tax exemption amount reverting to the prior $5 million exemption level adjusted for inflation (approximately $7 million per individual, $14 million for a married couple). Because the sunset reduction is scheduled to occur automatically, congressional action would be needed to prevent the sunset from happening. If Congress remains divided, it is unlikely there will be enough votes to prevent the scheduled sunset at the end of 2025. Given that scenario and the ability to transfer assets up to $12.92 million now, with no clawback after 2025, it would be prudent for individuals who could have an estate tax problem starting in 2026, to consider available estate tax planning options now.
There are a variety of estate tax reduction strategies being employed in the current environment. Here is an overview of some common estate planning strategies to consider:
Even though the strategies discussed above are common, each person’s situation is different, and the strategies discussed above may not best achieve your specific needs. For questions about your current estate plan or help with your estate tax planning needs, please contact our Estate Planning Services specialists at [email protected].
Please read important disclosures here.
Paul oversees Centralized Estate Services for Cerity Partners and is a Partner based out of Denver, Colorado. He works with Cerity Partners’ advisors to review...
While legal documents provide the structural framework for your estate planning, a compassionate letter of instructions captures the nuances of your personal wishes, ensuring clarity…
Estate Tax Planning Strategies in 2023: Learn about strategies to navigate estate taxes before changes take effect in 2026. Options include Spousal Lifetime Access Trusts…
Discover the intricacies of carried interest transfers in estate planning with our in-depth guide, "Having Your Cake and Eating It Too!" Learn about the IRS…
Discover the ins and outs of preplanning your funeral to ease the burden on your loved ones, save money, and ensure your wishes are fulfilled.
Partner & Market Leader
How to Help Your Adult Kids Buy a Home. Each strategy can have major estate, tax and family dynamic implications. Here are several different strategies…
Curious about learning more? Let’s talk.
Tell us about yourself and your current financial situation without cost or obligation. Receive an introduction to a wealth management colleague, have a personal conversation, and get your questions answered.