Are you Prepared For Changes to Estate Tax Exemptions?

3/1/2023 - By Christina Maslen and Brett Snyder, JD, LL.M

Did you know that the current estate tax exemption will be reduced by more than 50% beginning January 1, 2026?

What Does This Mean?

This means you have less than three years to utilize the current $12.06 million lifetime exemption (which will increase each year with inflation) to transfer assets out of your estate - tax free.

For example, if you have assets totaling $20 million, you can transfer $12.06 million out of your estate today which would result in almost $5 million of tax savings. However, if you do not transfer assets prior to 2026, your estate of $20 million could pay taxes of almost $5.6 million.

Questions?

Time is of the essence to start planning to pass your wealth down to future generations. Contact our Trust and Estate Planning team to see how we can help you with your estate planning needs.

About the Authors | Christina Maslen & Brett Snyder, JD, LL.M

Christina is a senior manager in the Tax & Accounting Services practice of Saltmarsh, Cleaveland & Gund. She has been practicing public accounting since 2008 and joined Saltmarsh in August of 2011. Christina’s primary areas of experience include the preparation of individual, trust and estate tax returns and related accounting services.

Brett is a senior in the Tax & Accounting Services practice of Saltmarsh, Cleaveland & Gund. Prior to joining Saltmarsh in January 2013, he worked as a litigation assistant and completed a five-month externship with the Mississippi Office of the Attorney General and also worked as a staff accountant for an accounting firm in Birmingham, Alabama prior to attending law school. Brett’s primary areas of experience include tax research, planning and consulting.


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