Important Note About the Tax Cuts and Jobs Act in 2025

The Tax Cuts and Jobs Act (TCJA) of 2017 will expire at the end of 2025, bringing significant changes to gift and estate tax exemptions. A big change is that the lifetime gift exclusion is expected to drop from $13,990,000 to approximately $7 million in 2026.

This change could result in a 40% tax on the difference, potentially costing millions in additional taxes.

This sunset deadline may seem far away, but proper estate planning takes time. Estate attorneys will likely experience high demand as we approach the end of 2025, making it crucial to start planning now.

If you wait until mid-2025, you may find it difficult or impossible to find a qualified estate attorney and complete the necessary trust documentation before the tax changes take effect.

At Dorko Wealth & Estate Planning, we can help you develop comprehensive trust and tax strategies to protect your assets from these impending changes.