The Tax Cuts and Jobs Act (TCJA) was enacted in 2017, and part of this bill amended the lifetime exclusion amount for estate and gift tax planning. Over the last 6 years, the lifetime exclusion has ballooned from $10 million to over $13 million in 2024. Together, a married couple could leave $26 million of asset value to their family or other beneficiaries, free of federal estate tax. However, at the end of 2025, this increased lifetime exclusion will sunset and revert to a lower amount. What can taxpayers do now to enhance their estate planning, and how do recent Tax Court cases impact estate planning?

Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, talk with Mike Kirkman, Partner and Estate, Trust, and Gift Tax Leader, and Katie Sims, Estate, Trust, and Gift Tax Manager, about the importance of taking time to engage in estate and trust tax planning for small and large estates. 

Listen to learn more about: 

• 04:04 – Annual gifts and estate exclusions from 2023 and 2024 
• 04:52 – Importance of addressing estate planning
• 06:55 – Schlapfer case, Tax Court Memo 2023-65  
• 09:14 – Cecil case, Tax Court Memo 2023-24
• 12:30 – Planning taxpayers should engage with trusts
• 15:33 – Spousal Lifetime Access Trust (SLAT) overview
• 18:33 – Estate of Hoensheid Tax Court Memo 2023
• 21:00 – Advice for smaller estates

Related Guidance

• Federal Estate and Gift Tax Exemption Will Sunset After 2025: How to Prepare Now
• 2023 Year-End Tax Planning Checklist for Individuals