ARTICLE · 05 FEBRUARY 2025

What Can We Expect For U.S. Estate Tax Under A Second Trump Administration?

O'Sullivan Estate Lawyers LLP

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Now that Donald Trump has been inaugurated, what can we expect to happen to U.S. estate tax?

CanadaTax

Margaret O'Sullivan

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Now that Donald Trump has been inaugurated, what can we expect to happen to U.S. estate tax?

There has been a rapid flurry of executive orders and announcements since the January 20, 2025 inauguration, but not yet any guidance on what to expect for U.S. estate tax in 2025 and afterwards.

2025 is a big year because the lifetime exclusion amount is set to decrease on January 1, 2026 to $5M (USD) adjusted for inflation since 2011 unless legislation is passed by U.S. Congress. As well a number of other tax cuts will expire. For U.S. lawmakers, 2025 could be a major year for tax reform.

By way of background, theTax Cuts and Jobs Act("TCJA") was passed by the U.S. Congress and signed into law in the first Trump administration and reduced income taxes and estate taxes, but it contained a sunset provision of December 31, 2025.

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