How will a second Trump administration impact the future of estate tax exemption? Myles Fischer, co-leader of the firm’s Wills, Trusts and Estates Practice Group, along with other regional trusts and estates attorneys, weighed in on the topic in a recent Rochester Business Journal article.

The estate tax exemption, currently $13.6 million per individual, is the maximum value of assets an individual can leave to their heirs upon death without incurring federal estate tax.

The increased exemption, part of the 2017 Tax Cuts and Jobs Act, is scheduled to “sunset” on January 1, 2026. If no congressional action is taken to extend the law, the exemption will revert to an inflation-adjusted amount of about $7 million in 2026. In the article, Myles noted that even if the increased exemption is allowed to expire, it can eventually get reinstated retroactively.

According to the article, the estate tax exemption and the gift tax exemption are linked. As a result, many taxpayers have been able to lock in the higher exemption limit by transferring assets and making gifts. “Clients that are high net worth, or ultra-high net worth, that have the ability and are able to make these large gifts … should still consider doing so — and consider doing so sooner rather than later,” Myles said. Whether the increased exemption remains or not, moving assets (and the future appreciation on such assets) out of the estate is generally productive from a tax mitigation standpoint, he advises.

View the full Rochester Business Journal article (subscription may be required).