Personal Planning Strategies

Estate, Gift and GST Tax Update

What This Means for Your Current Will, Revocable Trust and Estate Plan

The estate and gift tax regimes have been permanent and unified since the passage of The American Taxpayer Relief Act of 2012 (the "2012 Act"). In 2017, the Tax Cuts and Jobs Act (the "2017 Act") significantly increased the estate, gift and generation-skipping transfer ("GST") tax exemptions, which is scheduled to continue to be increased for inflation through December 31, 2025 as set forth below.

Tax Exemption Inflation Increases for 2025

For 2025 the increases under the 2017 Act are as follows:

• In 2025, there is a $13,990,000 federal estate tax exemption and a 40% top federal estate tax rate. This is a $380,000 increase from the prior year.