Estate Tax Repeal & Its Impact on Planning

Mar 21, 2025

Bob Keebler, a renowned CPA and estate planner, discusses the potential repeal of the estate tax and its far-reaching implications. He outlines possible legislative outcomes, highlighting how high-net-worth individuals may need to adapt their strategies. The conversation dives into the importance of revising trust documents and understanding portability rules, which could change drastically. Keebler also emphasizes a proactive approach, recommending the creation of GST-exempt trusts to safeguard clients' interests amidst uncertain future tax laws.

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Intro

00:00 • 2min

The Future of Estate Tax: Debate and Implications

02:02 • 4min

Understanding Triple Generational Disclaimers in Estate Planning

05:37 • 2min

Navigating Estate Tax Repeal and Trust Strategies

07:20 • 10min

Conclusion and Call to Action on Estate Tax Discussion

17:49 • 2min

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:

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.
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.
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.
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.

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