Conclusion and Call to Action on Estate Tax Discussion

In this episode of the AICPA Personal Financial Planning Podcast, host Cary Sinnett speaks with expert CPA estate planner Bob Keebler about the latest legislative efforts to repeal the estate tax. They discuss the implications for financial planners, strategies to consider, and how advisors can proactively help clients navigate potential changes.

Key Takeaways:

1. Estate Tax Repeal on the Horizon
   • Bills have been introduced in Congress to repeal the estate tax while retaining the gift tax and repealing the generation-skipping transfer (GST) tax.
   • The likelihood of repeal is uncertain, and any repeal may be temporary depending on future political shifts.
2. Potential Scenarios for Estate Tax Reform
   • Three possible outcomes: extension of the current Tax Cuts and Jobs Act (TCJA), total repeal, or a sunset of the current exemption levels.
   • A sunset would likely be the least favorable for high-net-worth individuals, while total repeal could create new planning challenges.
3. Implications for Estate Planning Strategies
   • Portability rules could be affected, potentially eliminating the ability for a surviving spouse to use a deceased spouse’s unused exemption.
   • Trust structures, such as bypass and GST-exempt trusts, may need to be reviewed and adjusted before any legislative changes take effect.
4. Planning Ahead: A Limited Window for Action
   • Advisors should consider creating GST-exempt trusts in 2025 before any repeal is enacted to preserve tax benefits.
   • Reviewing and updating existing estate planning documents is critical to avoid unintended consequences if the tax law changes.

Access resources and events related to this podcast: Note: If you’re using a podcast app that does not hyperlink to the resources, visit Libsyn (PFP) to access show notes with direct links.

• Understanding Estate Tax Sunset | Navigating Tax Changes for Expiring TCJA Provisions
• Estate planning for the TCJA sunset of the double exclusion amount
• Planning for tax changes and tax reform

This episode is brought to you by the AICPA’s Personal Financial Planning Section, the premier provider of information, tools, advocacy, and guidance for professionals who specialize in providing tax, estate, retirement, risk management and investment planning advice. Also, by the CPA/PFS credential program, which allows CPAs to demonstrate competence and confidence in providing these services to their clients. Visit us online to join our community, gain access to valuable member-only benefits or learn about our PFP certificate program.

Subscribe to the PFP Podcast channel at Libsyn to find all the latest episodes or search “AICPA Personal Financial Planning” on your favorite podcast app.