skip to main content

Tax Cuts and Jobs Act; A Boon for Those Considering Wealth Transfers

Tax Cuts and Jobs Act; A Boon for Those Considering Wealth Transfers

Under the newly enacted Tax Cuts and Jobs Act, the Federal estate, gift and generation-skipping tax (GST) lifetime exemption amounts have now increased to $11.2 million for individuals and $22.4 million for married couples. After increasing with inflation each year through 2025, the exemption amounts will revert back to the 2017 levels ($5,490,000 and $10,980,000) on Jan. 1, 2026. These substantial, yet temporary, increases in the exemption amounts present a unique opportunity for the implementation of various estate planning techniques that will allow the transfer of wealth to future generations.

Taxpayers should consider taking advantage of the increased gift tax and GST exemption amounts by making gifts to their children or grandchildren (either outright or in trust). In order to leverage their gift and GST exemptions even more, taxpayers can utilize advanced wealth transfer techniques as well. These include sales to defective grantor trusts or the funding of grantor retained annuity trusts (GRATs) and split-interest charitable trusts. It is important to note that certain of these techniques are more effective in a low interest rate environment. With interest rates expected to rise significantly, it may be advantageous to act in the near future. 

It is also recommended that you review the terms of your wills and revocable trusts at this time to ensure they remain in accordance with your wishes. If your post-death trusts are funded according to a formula clause tied to the exemption amount, they may need to be revised to coincide with the new larger exemptions. To review your estate planning and wealth transfer strategies, contact us in one of our many locations

Hide Firm Disclaimer


UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc., and its subsidiary entities. UHY Advisors, Inc.’s subsidiaries, including UHY Consulting, Inc., provide tax and business consulting services through wholly owned subsidiary entities that operate under the name of “UHY Advisors” and “UHY Consulting”. UHY Advisors, Inc., and its subsidiary entities are not licensed CPA firms. UHY LLP, UHY Advisors, Inc. and UHY Consulting are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. “UHY” is the brand name for the UHY international network. Any services described herein are provided by UHY LLP, UHY Advisors and/or UHY Consulting (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.

On this website, (i) the term "our firm", "we" and terms of similar import, denote the alternative practice structure conducted by UHY LLP and UHY Advisors, Inc. and its subsidiary entities, and (ii) the term "UHYI" denotes the UHY international network, in each case as more fully described in the preceding paragraph.