Expiration date – IRS provides estate tax protection against sunsetting TCJA provisions

Description

Abstract: Beginning in 2018, the Tax Cuts and Jobs Act (TCJA) effectively removed gift and estate tax liability concerns for many families. However, the favorable estate tax changes in the TCJA are currently scheduled to sunset after 2025, unless Congress takes further action. Notably, the TCJA provision that doubled the gift and estate tax exemption from $5 million to $10 million (adjusted annually for inflation) will revert to pre-2018 levels after 2025. This article explains tax relief available to families who could be adversely affected by large lifetime gifts during this timeframe. A sidebar reminds readers to take advantage of making annual exclusion gifts.