Last year, multiple proposals were introduced in Congress that
would have significantly altered transfer tax planning for wealthy
individuals and business owners. The proposals fell flat due to
razor thin majorities the Democrats hold in Congress. Even if no
changes occur in the near term, on January 1, 2026, current law
automatically “sunsets,” which will result in estate
tax exemptions being halved.
The following is a review of a few significant transfer tax
planning considerations you should consider in 2022:
- Gift and Estate Tax Exemption. The gift and
estate tax exemption amount has been increased from $11.7 million
per person to $12.06 million per person this year. Married couples
can combine the use of each spouse's exemption, resulting in
a combined 2022 exemption amount of $24.12 million (assuming proper
planning and elections are made). As noted above, the exemption
amount is scheduled to be reduced to approximately $6 million per
person beginning in
