Did you know the federal estate and gift tax exemption amounts are set to decrease at the end of 2025? Currently, an individual can make transfers by gift during life, and bequests at death, up to an aggregate of $12.92 million, with that amount increasing to $13.44 million in 2024, without incurring gift or federal estate tax. Similarly, the federal GST exemption is currently $12.92 million, increasing to $13.44 million in 2024. On January 1, 2026, these amounts are scheduled to “sunset” and revert back to the 2017 amount of $5 million, adjusted for inflation.
With the scheduled sunset of the all-time-high unified estate and gift tax exclusion amounts, now is the time to address estate and tax planning updates and to consider the use of the gift and generation-skipping transfer exemptions.
The estate planning attorneys at Underberg & Kessler LLP advise clients and utilize sophisticated estate planning strategies to preserve and enhance our clients’ wealth for current and future generations. For more information about our Estates and Trusts legal services, contact Joshua B. Beisker at jbeisker@underbergkessler.com or 585-258-2879.