When the Trump tax plan was passed, one of the most-discussed items in the estate planning community was the fact that estate and generation-skipping exemptions were doubled to a whopping $11.2 million, per person, but that these doubled exemptions were scheduled to sunset at the end of 2025. The biggest concern for most planners was if someone made large gifts in 2025, if the IRS would later attempt to tax those very gifts after the exemption fell. Fortunately for taxpayers, the IRS has come out with proposed rules saying that there will be no clawback on these large lifetime gifts. That means that will will likely see very large gifts being made in 2025 (in the tens of millions of dollars) if it appears that the “doubled” estate tax exemption will be allowed to sunset after 2025.
