SETAUKET, NEW YORK — In 2017, then-President Donald J. Trump enacted the Tax Cuts and Jobs Act of 2017. As part of this legislative package, single high-net-worth individuals were able to exempt the first $13 million from their taxes and couples could do the same at $26 million. However, when the exemptions sunset on December 31, 2025, the exemption will be cut in half — $6.5 million for individuals and $13 million for families — and nearly 2 million families are expected to pay a 40% tax rate on their assets.
Attorney David J. Lorber of David J. Lorber & Associates, PLLC advises wealthy families to make a plan for their gift and estate tax planning for the next tax year as soon as possible. “It is possible Congress can propose changes to the TCJA before it sunsets at the end of 2025,” he says. “In either case, waiting until next year to get everything together is not a good idea.”
Another reason to start planning sooner rather than later, Mr. Lorber says, is that the Internal Revenue Service is keeping a watchful eye out for tax evaders. The agency has hired an additional 87,000 agents and surely some of those resources will be utilized in expanding their gaze. To think that high-net-worth individuals and families would be of interest is not a far reach.
“The last thing you want to do when approaching this issue is to take actions that will cause you to come under scrutiny from the IRS and risk an unnecessary audit,” Mr. Lorber says. “Be sure to go through everything with your accountant and financial adviser(s) with full transparency. Tell them how much you have in taxable assets, while at the same time, ask them for ways to protect your assets from tax liabilities and preserve them for future generations.”
Mr. Lorber also suggests reviewing estate plans to see if their heirs will be incurring an unforeseen tax liability. “I would strongly suggest meeting with an estate planning attorney and financial team to make sure everything is in order before the TCJA expires at the end of next year,” he says.
For more information, call (631) 750-0900 or visit www.djlorberlaw.com.
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About David J. Lorber & Associates, PLLC
Located in Setauket, New York, the law firm of David J. Lorber & Associates, PLLC concentrates its practice in estate planning, probate and estate administration, modifications and foreclosures, litigation and real estate. The firm serves clients from all over Long Island and the New York metro areas — all of Suffolk County, Nassau County, Queens, Brooklyn, Manhattan, Bronx and Westchester. Whether your legal needs involve estate planning or real estate law, David J. Lorber, Esq. can completely address your concerns for a wide variety of issues. For more information, call (631) 750-0900 or visit www.djlorberlaw.com.
ATTORNEY ADVERTISEMENT: PLEASE BE ADVISED this press release does not constitute legal, tax, accounting, investment or other professional advice. For informational purposes only.
