The Tax Cuts and Jobs Act of 2017 increased the lifetime gift and estate exclusion to about $11.2 million per person (twice this for married couples who plan correctly) from the previous limit of $5.6 million per person.

The only problem with this increase is that it expires on December 31, 2025, when the limit will revert to the previous lower figure (all as adjusted for inflation).

So if your estate exceeds or is expected to exceed the $11.2 million threshold, to limit exposure to the 40% gift and estate tax, you should seriously consider making gifts today. All future earnings and appreciation in value will then avoid gift and estate taxes.

This post was written by LeRoy Metz and Larry Blair.

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