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Abstract: 

The Tax Cuts and Jobs Act (TCJA) of 2017 doubled the 2018 basic exclusion amount, and it’s risen since then so that in 2024, the basic exclusion amount is $13.61 million for an individual and $27.22 million collectively for a married couple. Thus, many individuals will not need to pay an estate tax at death if they die in 2024. However, on January 1, 2026, the basic exclusion amount is legislatively scheduled to be reduced to $5 million per person adjusted for inflation to an estimated $7 million per person or $14 million collectively for a married couple—more than $6 million less per person than today. High-net-worth taxpayers should plan now to minimize their estate tax exposure. This article features a few estate tax planning strategies to consider before December 31, 2025.

Keywords: basic exclusion amount, lifetime gifts, charitable gifts, spousal lifetime access trust, portability election

Affiliations:  1: Calfee Halter & Griswold LLP; 2: Calfee Halter & Griswold LLP.