2025 Estate Planning Moves, the 2026 TCJA Sunset?

by Prof. Robert Bloink and Prof. William H. Byrnes

The divides and sharp disagreements in Congress have become even more apparent since the new administration took office. With the deadline for extending the 2017 tax cuts less than a year away, many clients should be advised on estate tax planning strategies that they can begin to implement today in order to take advantage of the generous estate tax exemption amounts in 2025. For 2025, each taxpayer can exclude up to $13.99 million ($27.98 million per married couple) from the 40% federal estate tax. Absent congressional action, those amounts will fall by roughly $7 million ($14 million per married couple), considering inflation adjustments to the pre-2017 $5 million base amount. While the future remains entirely uncertain, mid to high-net worth clients should strongly consider taking action to capitalize on the historically high 2025 exemption amounts before it’s too late.

Who Should Be Concerned About the 2025 Estate Exemption’s Sunset?