Will an Estate Tax Exemption Change Impact You?

Most people today are not impacted by the estate tax exemption amounts. That’s because the amounts are so high that all but those with a high net worth don’t have to worry about that at a federal level.

But the current high federal levels might not last forever. There are proposals on the table that would reduce the amounts, meaning that many more people would have to think about estate tax exemption planning. This could include the use of strategies over your lifetime to minimize what’s in your taxable estate as well as strategies for what happens to your assets at your death, too.

Based on current proposals, this would reduce a married couple’s exemption amount from a current combined $23.4 million down to just $7 million. There are a few options available to you if you and your loved ones want to discuss what this means for your family. It’s expected that no matter what the change is, that this could come into effect over the next couple of years and that multiple changes might hit estate taxes during this time.