Kirkland Alert

Gift, Estate and GST Tax Exemptions

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The gift, estate and GST tax exemptions are now $11.58 million per taxpayer ($23.16 million total for a married couple) and are scheduled to decrease back to approximately $6 million in 2026. However, a new administration and Congress could reduce it much sooner. Former Vice President Biden’s platform suggests reducing it as low as $3.5 million. If enacted, such a law could be retroactive to January 1, 2021.

Now is the time to consider using your gift and GST tax exemptions, if you are financially able and willing. Using your exemptions will remove the assets and all future income and appreciation from your estate, escaping gift and estate taxes. There are many forms and methods of making such gifts, including to a trust that includes your spouse as a beneficiary. You can gift cash, liquid assets, residences, or even forgive debts owed by trusts or others. Also, with the current historically low interest rates, selling assets to an irrevocable trust in exchange for a promissory note is a quick and effective way to transfer value and appreciation out of your estate.

Please contact a member of the Trusts & Estates Practice Group if you are interested in discussing whether and how to use these exemptions.

Authors

David A. Handler, P.C.

David A. Handler, P.C.

Partner Chicago
Angelo F. Tiesi

Angelo F. Tiesi

Partner Chicago
Tricia Ring

Tricia Ring

Of Counsel Bay Area – San Francisco

Practices

This communication is distributed with the understanding that the author, publisher and distributor of this communication are not rendering legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, assume no liability whatsoever in connection with its use. Pursuant to applicable rules of professional conduct, this communication may constitute Attorney Advertising.