The slow death of the ‘Death Tax’ has arrived, according to a CNBC Business Editor. Also known as an inheritance or estate tax, the death tax is applied to estates that are valued above a certain amount.

Background

In 2024, the death tax threshold was $13.61 million and is only applied when a transfer of property occurs after a person’s death. During the 2017 tax cuts, the tax was significantly reduced, doubling from estates worth $5 million to exempting estates worth up to $11 million dollars. That cut was anticipated to expire by this year; however, not only is it being extended, but it’s expanding.

Current events

The exemptions will now open to estates worth up to $15 million dollars. For couples, the value can be as high as $30 million; whereas the 2017 cut allowed couples with a value of $22 million or less to be exempt.  This exemption will remain indexed for inflation, but unlike the prior exemption, will become permanent. This means the exemption could increase by a million dollars every year.

Conclusion

Though many wealthy families hire estate lawyers to help them evade the tax, these new changes do have an upside; the new break continues to ensure that middle class and upper-middle class taxpayers will continue to pass wealth on to their children and grandchildren without concern of burdensome estate tax. For a trust and estate lawyer you can trust, contact Fausone & Grysko PLC online or by phone at (248) 380-0000.