The estate and gift tax provisions reduce the exemption amounts that have been temporarily elevated since 2017 and introduce new valuation rules for family business transfers that close a widely-used planning technique.
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The Sunset Acceleration
This bill codifies the TCJA sunset and adjusts the estate tax exemption to $6.8 million per person, indexed for inflation. Estates between $6.8 million and $13.6 million that were previously exempt will now face estate tax.
Core Takeaway
Estates in the newly taxable range should model whether irrevocable life insurance trusts, spousal lifetime access trusts (SLATs), or charitable remainder trusts can reduce exposure. GRAT minimum terms are extended to 3 years.