What You Should Know About Future Exemption Levels

Many people are already familiar with the 2017 Tax Cuts and Jobs Act that made significant changes to tax planning. However, the gift tax and estate tax exemption should be something that you’re familiar with so that you can leverage these to your advantage. It’s important to understand that the 2017 tax reform pushed up the maximum exemption to what is essentially double the previous amount.

However, with regards to your tax and estate planning, this change is not permanent. By 2026 the exemption will drop down to 2017 levels unless Congress decides to make changes prior to this time. Other plans to reevaluate the exemption level have been put on pause for this moment but it is very likely that Congress will at least reconsider the issue in the near future.

If you already have a taxable estate, it is important that you do not just file this information away. Instead you should begin to take action immediately. For planning of this scope and size, it is critical to work with a team of knowledgeable professionals to assist you with your tax and estate planning concerns.