The Tax Cuts and Jobs Act temporarily doubled the amount which can be given free of tax. However, that amount reverts to the permanent, undoubled amount in 2026. The estate tax ordinarily includes prior taxable gifts and then applies the exclusion to the total. However, in 2026 or later, this could result in a tax on amounts which weren’t taxable when gifted. This issue is the “clawback.” New Proposed Regulations resolve this issue. Read on to learn more from my friend and colleague Steve Hartnett, an estate planning expert.
Proposed Regulations Address “Clawback” Issue
Timothy P. Murphy is an estate planning and elder law attorney whose practice emphasizes helping people to build, preserve and pass on their wealth. He works with his clients to accomplish their goals while avoiding unnecessary court proceedings and minimizing or eliminating exposure to death taxes.
Latest posts by Timothy P. Murphy (see all)
- Changing “Irrevocable” Trusts Through Judicial and Nonjudicial Modification - September 22, 2021
- Donor Advised Funds: Too Good to Be True? - September 20, 2021
- How to Apply for Medi-Cal in California - September 18, 2021
Leave a Reply
You must be logged in to post a comment.