In 2024, it’s crucial to review your estate plans due to potential changes in estate tax laws by the end of 2025 under the Tax Cuts and Jobs Act. This law might reduce the estate tax exemption, a limit on your property’s value without higher taxes. If you own valuable assets like business shares, life insurance, or real estate, their increased value could lead to tax issues when combined
For individuals with substantial wealth, these assets alone may not be problematic, but their cumulative value could result in higher taxes. Planning for the future of your business is vital, and options such as gifting shares to family or creating a family partnership can prevent the need to sell assets to cover a hefty tax bill.
Regularly check your life insurance policies as their growing value might exceed lower tax exemptions. Consulting with an insurance agent and financial planner ensures the right coverage for your loved ones. Evaluate real estate values and consider using trusts or special entities to safeguard your property and family.
Stay informed about changing estate tax rules and collaborate with financial and tax professionals for personalized advice. Update your estate plan before 2025 to adapt to potential changes in the estate tax exemption.