Do The New Lifetime Exemptions Change Your Estate Plans?

The Tax Cuts and Jobs Act increased the lifetime exemptions for the gift and estate tax to $11,400,000. This change may impact your current estate plan. It would be beneficial to review your plan and ensure that your estate is set up in a way to take advantage of the increased exemption. If your plan has not been reviewed since the changes have gone into effect, it is quite possible that your planning goals will not be achieved unless changes are made. By taking the time to discuss your estate plan, we can work together to potentially save a significant amount in estate taxes that would be paid by your estate.

If you would like to learn more, you can read some of the articles we have written on the subject:

• Estate Planning Uncertainty Under the TCJA 
• Now More Than Ever is a Good Time to Consider Transferring Assets Out of an Individual’s Estate

Our Trust & Estate Practice and our Valuation Services Practice at Citrin Cooperman has been focused on this exemption and developed a procedure that will assess your estate tax exposure based on your current net worth and the current law. In addition, we will be able to quantify the tax impact of not taking advantage of the current law and allowing the increased exemptions to sunset. Use of the $11.4M exclusion now could save a significant amount in federal estate tax and potentially additional state estate tax if the estate tax exemption goes back to $5.59M in 2026.

If you have any questions about this exemption or how we can help, please reach out to Howard Klein or Mandeep Trivedi.