Cunneen Booth LLP attorney, Gary Cunneen, explains the changes in estate tax laws in this article for the Union Tribune.
If you wish to leave assets to your heirs, careful planning is essential to avoid transfer taxes that can claim nearly half the value of your estate. Starting January 1, 2026, the federal basic exclusion amount (the amount an individual can transfer without incurring a transfer tax during their lifetime and at death) will decrease to about half of its current value. In 2024, U.S. citizens can pass up to $13.61 million to their heirs, combining lifetime taxable gifts and asset transfers at death, without incurring transfer taxes. Beginning Jan. 1, 2026, the federal basic exclusion amount decreases to $5 million indexed for inflation, which experts currently predict will result in an exclusion amount of $6.5 million to $7 million.
Read here to find out how to plan for these upcoming changes: San Diego Union Tribune
