As the 2024 presidential election approaches, significant changes in tax policies and estate planning regulations are on the horizon.
In 2017, the Tax Cuts and Jobs Act (TCJA) law passed, which doubled the estate tax exemption—the amount that a person or couple can give away without paying gift or estate taxes. As of 2024, an individual can gift up to $13.61 million, and a married couple can gift up to $27.22 million without being taxed on those amounts. However, the TCJA is set to expire at the end of 2025. Depending on inflation, the exemption amounts are forecasted to drop to around $7.5 million for individuals, and $14.5 million for married couples.
The TCJA may or may not be extended, and this is based on who ends up in the Oval Office next. This underscores the importance of staying prepared and planning ahead to protect your estate and finances, no matter the outcome of the 2024 election.
7 Ways to Protect your Estate During Uncertain Times:
- Stay Up to Date: Monitor political updates and potential policy changes. Understanding how proposed modifications could affect your estate plan and financial health will help you make the best possible decisions for your unique situation.
- Keep Your Estate Plan Updated: Reviewing your estate planning documents every 3–5 years is always recommended, but it is particularly essential when policy changes are likely. Take this opportunity to review your wills, trusts, beneficiaries, and power of attorney documents.
- Explore Gifting Strategies: Consider making strategic gifts during an election year. By transferring assets now, you can reduce the size of your taxable estate before any policy changes take effect and make the most of the current exemption limits.
- Set Up a Trust: Establishing a legally sound trust can help protect your assets. Trusts not only protect your assets from potential tax increases, but they also ensure your assets are managed according to your wishes and can be seamlessly transferred to your beneficiaries when the time comes.
- Seek Professional Advice: Estate planning may feel daunting, but seeking personalized support from an estate planning attorney will leave you with peace of mind, knowing your assets are protected—especially as tax policies evolve.
- Flexibility is Key: Be prepared to adjust your estate plan as new policies are implemented. Flexibility allows you to respond proactively to changes and safeguard your legacy.
- Prepare for Future Health Care: Consider how changes in health care policies might affect your expenses and estate plan. It’s important to ensure your plan covers health care and long-term care costs and provides the care you need.
Contact Miller Estate and Elder Law
Staying informed and flexible when reviewing or implementing changes to your estate plan will help your keep your assets safe from creditors and predators, and ensure your final wishes are honored in the future. Whether you are reviewing your current plan or exploring new strategies, the experienced attorneys at Miller Estate and Elder Law are here to help guide you through the process. Contact us today at (256) 251-2137 or by filling out the form below.
