As we step into 2025, the Internal Revenue Service (IRS) has announced key inflation-adjusted figures that significantly impact estate and gift tax planning. These updates provide an opportunity for families and individuals to reassess their financial strategies and estate plans. Below, we’ve outlined the essential changes and how Gentreo can help you make the most of them.
Key 2025 IRS Adjustments
Lifetime Estate and Gift Tax Exclusion
- 2024 Amount: $13.61 million per individual
- 2025 Amount: $13.99 million per individual
For married couples, this exclusion doubles to $27.98 million, allowing substantial wealth to be transferred without incurring federal estate or gift taxes.
Annual Gift Tax Exclusion
- 2024 Amount: $18,000 per recipient
- 2025 Amount: $19,000 per recipient
This increase allows individuals to gift more without triggering tax liabilities, making it easier to share your wealth during your lifetime.
Why These Numbers Matter
These adjustments are a direct reflection of inflation and provide taxpayers with increased flexibility for transferring wealth. However, these higher thresholds are temporary due to the impending expiration of the Tax Cuts and Jobs Act (TCJA) provisions at the end of 2025. Without legislative intervention, the lifetime estate and gift tax exclusion could revert to pre-2018 levels—estimated to be just under $7 million per individual (adjusted for inflation).
What You Should Do Next
Given the potential reversion of exclusion amounts, it’s crucial to act now to maximize the benefits of the current thresholds. Here are a few steps to consider:
- Review Your Estate Plan Use this opportunity to revisit your estate planning documents. Are your plans aligned with your goals and the new figures? Gentreo makes it simple to update your plans with our user-friendly tools.
- Leverage Annual Gift Exclusions Consider making tax-free gifts up to $19,000 per recipient in 2025. This is an excellent way to reduce the size of your taxable estate while benefiting loved ones now.
- Plan for TCJA Expiration Strategize around the possible reduction in exclusion amounts. If you’re considering transferring significant assets, acting before the end of 2025 may save your estate considerable taxes in the future.
- Consult Professionals While Gentreo offers tools to streamline estate planning, we encourage you to consult with legal and financial advisors for complex estate strategies.
How Gentreo Can Help
Gentreo provides a comprehensive, affordable platform for creating and maintaining your estate plan. With features like the Gentreo Digital Vault, you can securely store and share important documents, ensuring that your loved ones have access when it matters most. Our tools empower you to:
- Create and update wills, trusts, and powers of attorney.
- Organize essential documents in one secure location.
- Share access with trusted family members or advisors.
- Receive annual reminders to review and revise your estate plan.
Plan Ahead with Confidence
The IRS’s 2025 inflation adjustments highlight the importance of proactive estate planning. With Gentreo, you have the tools and resources to adapt to these changes and protect your legacy. Don’t wait until it’s too late—start planning today at www.gentreo.com.
Disclaimer: This guide is for informational purposes only and does not constitute legal or tax advice. Always consult a qualified professional for personalized guidance.
Don’t wait until it’s too late; start your estate planning journey with Gentreo today. By doing so, you’ll not only protect your loved ones but also gain the peace of mind that comes with knowing your legacy is secure. Click HERE to join now.
This article is for informational purposes only and should not be considered legal advice. Consult with a qualified attorney or estate planning professional for personalized guidance.
