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Navigating the Shift: Estate Tax Exception Changes Ahead

Imagine working a lifetime to build your legacy, only to have a significant portion snatched away due to changes in tax laws you weren't prepared for. Estate planning isn't just about legal documents – it's about peace of mind for you and security for your loved ones. As we stand on the cusp of a substantial shift in federal estate and gift tax exemptions, understanding and preparing for these changes is more critical than ever.

Understanding the Current Exemptions

Currently, individuals can shield up to $13.61 million from estate taxes, with couples enjoying a generous $27.22 million exemption. These figures aren’t just numbers – they represent a safety net, ensuring that your legacy transitions smoothly to the next generation without a hefty tax bill.

The Looming Changes

Here’s the crux: there are currently enacted exemptions which are set to expire on January 1, 2026. Without legislative intervention, we’ll revert to 2017 levels — adjusted for inflation, this means roughly $7 million for individuals and $14 million for couples in exemptions. But what’s the consequence? Estates exceeding these thresholds may face a daunting 40% tax rate. For many, this could mean millions in tax liability that could have been mitigated or even avoided with proper planning.

The Importance of Being Proactive

The clock is ticking, and the window to leverage the current exemptions is closing. Now is the time to act and revisit your estate plan with a seasoned estate planning and asset protection attorney. It’s not merely about avoiding taxes – it’s about ensuring your estate plan accurately reflects your wishes and the legacy you intend to leave behind.

Strategic Estate Planning Tips

So, what can you do? First, consider if gifting parts of your estate now makes sense. Utilizing the current exemptions can significantly reduce your taxable estate. Trusts are another powerful tool and can offer additional benefits, from tax savings to greater control over your assets’ distribution.

Consulting with an attorney can unveil strategies tailored to your unique situation. Perhaps it’s time to reassess your will, explore charitable donations, or consider how life insurance policies can be used to cover potential estate taxes.

How We Can Assist

At Sollertis, we understand the intricacies of estate planning and the looming challenges these tax changes pose. Our team is ready to collaborate with your financial and tax advisors, ensuring a comprehensive strategy that aligns with your financial goals and legacy aspirations.

Decide and Commit to Taking Action

With the potential for such significant changes on the horizon, the time to review and update your estate plan is now. Proactive planning today can ensure your legacy tomorrow. We invite you to reach out to Sollertis for guidance and support in navigating these changes. Together, we can ensure your estate is prepared for the future, preserving your legacy for generations to come.

If protecting your assets is important to you, consult with an asset protection attorney to speak about the many aspects of your investments and trust/entity structure options. Sollertis is a nationwide firm with attorneys licensed in California, Florida, Michigan, New York, and Texas, with a network of attorneys helping people in other states.

Sollertis primarily helps business owners and real estate investors grow and protect their wealth. Our legal team combines superior expertise and years of experience to plan, implement and maintain your protection. We guide clients through the intricacies of crafting a master asset protection plan and can help you make an informed decision regarding the best approach to protect and preserve your assets for yourself and your future generations.

Now You Know

There are many asset protection tools available to protect your assets. Remember, asset protection is like insurance, it doesn’t work unless you have it in place BEFORE THE CLAIM. So, don’t wait until it is too late to do this. You have been working very hard for a long time to build your wealth. Pull your winnings off the table by protecting them now.

Take the first step today and reach out to the experts in asset protection at Sollertis.

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