Estate Planning Update

January 2025

  1. 2024 Annual Gift Tax Exclusion: increased to $19,000 per donor, per donee.
  2. 2024 Gift and Estate Tax Exemption: increased to $13,990,000 per donor through 2025 (an increase of $380,000). See paragraph 6 below.
  3. Marital Deduction for Transfers to U.S. Spouse: remains unlimited.
  4. 2024 Generation Skipping Tax Exemption: increased to $13,990,000 per donor through 2025. See paragraph 6 below.
  5. Top rate for Federal Estate, Gift and Generation Skipping Taxes: 40%.
  6. National Topics:
    • The current Gift and Estate Tax Exemption is doubled to get to the amounts set forth above. The incoming administration has promised to extend its benefits, but such an extension is not guaranteed. If the doubling is allowed to expire, the exemptions will revert back to the inflation adjusted base amounts (approximately half of the above amounts) .
    • The Corporate Transparency Act (CTA) is a new federal law which became effective January 1, 2024, and applies to most closely held businesses. In December a Texas court imposed an injunction against enforcement of the CTA, and after several reversals and appeals, the Fifth Circuit Court of Appeals reinstated the injunction until a full hearing on the constitutionality of the law, currently scheduled for March 25, 2025. Therefore, the law currently does not require reporting of certain entity and beneficial owner information. For more information on the CTA and compliance see DeAngelisLegal.com/CTA and CTA Compliance Tips.
  7. Estate Planning Opportunities:
    • With no guarantee that the doubling of the exemptions will be extended, this is the last year that large estates will be able to take advantage of the increased amounts. Depending on the size of your estate and your age, it may be time to make significant gifts this year. If you are considering gifts and would like to review your alternatives, please contact us before June, as our calendar will fill up fast.
    • We also continue to see various structures to assist the next generation obtain housing, including secured loans, gifts in trust and outright gifts. With housing prices still high, these tools allow appreciation to grow on the next generation’s balance sheet.
  8. Firm News: 2024 was a big year for everyone at DeAngelis Legal.  Quinn sailed the 2024 Rolex Middle Sea Race, taking 2nd place in IRC 4, Madison got married and is now Madison Pollak, Garren’s youngest committed to play soccer in the Midwest next year, and Renae is the proud mother of a Boxer puppy.  We are all hoping for a peaceful 2025 and look forward to seeing you soon.