From CNBC: 2024-09-13 13:52:35

Ultra-wealthy investors are ramping up tax planning due to concerns about a higher estate tax. The current $13.61 million exemption is set to drop by half at the end of 2025. Expectations of a Republican sweep led many to delay, but with a tight race between Harris and Trump, many are taking action.

A record $84 trillion is set to transfer to younger generations in coming years, and the looming estate tax cliff is accelerating these gifts. Wealthy families must decide how much to give now to avoid potential tax changes. Advisors recommend considering family dynamics as well as tax implications in gift decisions.

Families may rush to make large gifts ahead of potential estate tax changes, leading to concerns about “givers’ remorse” if exemptions are extended. Attorneys warn that rushing could lead to IRS issues like triggering gift taxes. Advisors stress the importance of careful planning to avoid potential pitfalls.

While some wealthy families are considering other tax proposals, the estate tax sunset remains the most pressing issue. Inquiries and actions on wealth-planning strategies have accelerated in recent weeks. Families are urged to act now to take advantage of the current estate tax exemption before potential changes come into effect.



Read more at CNBC: Harris’ rise in polls sparks wave of wealth transfers to kids