Estate Planning for 2024 and Beyond: Time Is Running Out! Plan Now for Your Family’s Future

An article by Winne Banta Basralian & Kahn’s Jonathan Kukin and Marley Guerrara, “Estate Planning for 2024 and Beyond: Time Is Running Out! Plan Now for Your Family’s Future” was published recently in The New Jersey Law Journal.  In the article, Jonathan and Marley noted, “There are less than two years to take advantage of the highest federal estate and gift tax exemption of all time.  Are you prepared to capitalize on the unprecedented opportunity for tax planning prior to the ‘sunset’?” 

estate planning for 2024 and beyond

Year End and Future Tax Motivation – Is this the Lull Before the Storm?

As 2021 has come to an end and you begin your estate planning preparations for 2022 and beyond, it is important to reflect upon what almost happened this past year.

Under current law, the lifetime estate and gift tax exemption is set to sunset at the end of 2025, at which time the exemption amount will be reduced by half.  Although the most hastily discussed gift and estate tax rules of this year (i.e., an early sunset of the lifetime exemption amount) were not placed into effect, the proposed new law would have halved the allowable lifetime estate and gift tax exemption by the end of 2021.  While it appears, any immediate changes are on hold, this does not mean one should be complacent with their current estate plan. The changes to the gift and estate tax rules on the horizon should motivate you to review your current plan.

Winne Banta Basralian and Kahn recommends that you schedule a meeting with one of the attorneys in our Tax, Trusts and Estates Department, which will allow you and your family to consider and finalize the most comprehensive and effective estate plan that fits your specific needs and goals. Clearly, you should not remain quietly on the sidelines and defer your important planning until the current exemption sunsets at the end of 2025.  Do not overlook and forgo the value of the extra gifting power available to you while the exemption remains at a historical high.

As of January 1, 2022:

  • Annual Exclusion Increases to $16,000 from $15,000
  • Lifetime Estate and Gift Tax Exemption Increases to $12,060,000 from $11,700,00
  • Generation Skipping Tax Exemption Increases to $12,060,000 from $11,700,00
  • Grantor Trusts will remain an effective way to shift wealth to the next generation

Co-Chairs of the Tax, Trusts & Estates Department

Martin J. Dever, Jr.    mdever@winnebanta.com

Jonathan Kukin         jkukin@winnebanta.com

Partners of the Tax, Trusts & Estate Department:

Arthur I. Goldberg        agoldberg@winnebanta.com

Peter J. Bakarich, Jr.    pbakarich@winnebanta.com

Associates of the Tax, Trusts & Estate Department:

Doris Brandstatter               dbrandstatter@winnebanta.com

Victor Manuel Nazario III    vnazario@winnebanta.com

Marley A. Guerrera              mguerrera@winnebanta.com

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