TRANSCRIPT:
Are you a decamillionaire?
Hi, I’m Ken Hargreaves, and I have a master’s degree in personal financial planning. I’m a certified financial planner and president of WealthGen Advisors, and these are the top reasons to take a look at your estate plan in 2024.
Understanding the Tax Cuts and Jobs Act Sunset in 2025
The end of 2025 marks the sunset for the Tax Cuts and Jobs Act. So why is that important, you might ask? Well, because in it, current law states that an individual can give away $13.61 million to anyone in their lifetime without being subject to gift or estate taxes. That number is $27.2 million per couple. Now, unless Congress acts by the end of 2025, that high exclusion disappears. In fact, that number shoots way back down to $5 million per person, adjusted for inflation, and top tax rates are around 40%. So if you have a large estate over $12 million, that could mean a serious tax implication if you wait to act.
The Urgency of Estate Planning Before 2025
So, why not just wait for 2025 to do your estate planning? Well, it’s a great question, and there are two main reasons for that. The first is that it can take months or longer just to audit, create your strategy, and then implement a well-thought-out and thorough estate plan. Also, some estate plans need multiple calendar years to be implemented correctly so as to not trigger any IRS issues.
Steps to Take for Effective Estate Planning
So don’t delay in scheduling a meeting with your tax advisor, CPA, and certified financial planner to make sure that your estate planning strategy takes advantage of these current laws. Waiting could unfortunately be costly. Now, if you’d like to learn more or for free resources, check out our website or click the link below. And as always, thanks so much for watching.
