Estate Planning Update

July 2025

  1. 2025 Annual Gift Tax Exclusion: increased to $19,000 per donor, per donee.
  2. 2025 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. 2025 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:
    • Finally! On July 4, 2025, the estate and trust industry celebrated the permanent increase in the estate and lifetime gift tax exemption to an inflation-indexed $15,000,000 per person beginning January 1, 2026.  After years of uncertainty, the law will allow families to reasonably predict their estate tax liability.  Even better is that the tax will apply only to very few Americans.  Waiting to die until 2026 is your best estate tax plan.
    • The new tax act also makes the $750,000 principal limit for the home mortgage interest deduction permanent and temporarily increases the cap on the itemized deduction for state and local taxes (SALT) to $40,000 for 2025 and increases the cap by 1 percent from that level through 2029, subject to a phaseout for taxpayers with incomes above $500,000. The cap is reduced to a flat $10,000 in 2030.
  7. Arizona Topics:
    • The Arizona Corporation Commission is updating its systems to help deter business fraud and unauthorized filings.  The new rules will require two forms of ID when filing and allow businesses to submit a Signing Authority Form.  The ACC will also begin dissolving inactive LLCs in the near future. If you receive a notice of administrative dissolution please contact us to update your corporate information. Keeping your business records current is the best way to avoid an inadvertent dissolution.
    • Beginning on September 26, 2025, Arizona increases the limits under which a party can collect assets by affidavit without the need for probate to $200,000 for personal property and $300,000 for real property. The increased limits will help facilitate the administration of assets held outside of a trust.
  8. Firm News: Quinn was recertified by the State Bar of Arizona in Estate and Trust law.  There are only 5 other lawyers in Scottsdale with such designation.  Unfortunately, like most businesses, costs have increased and earlier this year we adjusted our fee schedule for new clients.  These rates will apply to all clients beginning September 1st.  Our new fee schedule can be found here: Notice of Rate Increase.