Important Updates to Estate, Gift, and Generation-Skipping Transfer Taxes
Recent legislative developments have significantly impacted estate planning strategies for individuals and families. Under the recently proposed Opportunities for Business and Beneficial Bequests Act (OBBBA), substantial changes to federal tax exemption amounts are scheduled to take effect beginning in the 2026 tax year.
Specifically, the estate, gift, and generation-skipping transfer (GST) tax exemption amounts will increase to $15 million per individual, up from the current exemption of $13.99 million for 2025. Notably, these increased exemption amounts will be permanent and will continue to be adjusted annually for inflation.
These changes represent meaningful planning opportunities for clients aiming to maximize wealth transfer efficiency and minimize potential tax exposure. With higher permanent exemption levels, individuals and families can confidently engage in long-term estate planning and gifting strategies without the uncertainty of fluctuating exemption limits.
We encourage our clients and prospective clients to review their current estate plans and gifting strategies in light of these developments. Our experienced attorneys are available to provide personalized guidance and ensure that your wealth preservation goals align effectively with the evolving tax landscape.
Please contact our office to schedule a consultation and learn how these important legislative changes could impact your estate and gift planning decisions.
Disclaimer:
The information provided in this post is for educational and general informational purposes only and does not constitute legal, tax, financial, or other professional advice. Laws, regulations, and interpretations are subject to change frequently and may vary by jurisdiction. You should not rely solely on this information when making decisions affecting your personal circumstances. Please consult with a qualified attorney, tax advisor, or financial professional for advice specific to your situation. The transmission or receipt of this information does not create an attorney-client relationship or any other professional relationship. This post may be considered advertising under applicable state laws.
