Understanding the Estate Tax

The tax code is always evolving. Wealthy clients expect help and guidance in understanding how to plan for the estate and gift taxes—and how to avoid potential missteps.

Did You Know?

Under current law, in 2026, the combined gift and estate tax exemption will revert from current levels to $5 million, adjusted for inflation dating from 2011 (approximately $7 million).

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Key Takeaway

By understanding the current tax system and anticipated changes, you will be better prepared to discuss tax-efficient planning strategies with high net worth clients, their attorneys and CPAs.

Combined Gift and Estate Tax Exemption*

2023 exemption for assets passed during life or upon death:

$12,920,000 for individuals.
$25,840,000 for a married couple.

Without proper planning, clients with assets that surpass these amounts can expect their estates to pay a federal tax of 40% in addition to any applicable state taxes.

Annual Exclusion

Gifts up to the federal gift tax annual exclusion of $17,000 per recipient can be made annually without using a portion of the lifetime exemption amount.

Next Step

Identify clients who would benefit from advanced planning and be a catalyst for planning discussions with their full tax team.

KEEP LEARNING

Know the Core Estate Planning Documents

LEARN MORE

Disclosure

*Source: "Estate Tax." IRS, https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax, Accessed May 11.

Examples provided are for illustrative and informational purposes only and not intended to be reflective of results you can expect to achieve.

The Firm does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Tax laws are complex and subject to change. Investors should always consult their own legal or tax professionals for information concerning their individual situations.

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LEARN | Understanding the Estate Tax

The tax code is always evolving. Wealthy clients expect help and guidance in understanding how to plan for the estate and gift taxes—and how to avoid potential missteps.

Prefer to save for later?

Key Takeaway

Combined Gift and Estate Tax Exemption*

2023 exemption for assets passed during life or upon death:

$12,920,000 for individuals.

$25,840,000 for a married couple.

Without proper planning, clients with assets that surpass these amounts can expect their estates to pay a federal tax of 40% in addition to any applicable state taxes.

Annual Exclusion

Gifts up to the federal gift tax annual exclusion of $17,000 per recipient can be made annually without using a portion of the lifetime exemption amount.

Next Step

Identify clients who would benefit from advanced planning and be a catalyst for planning discussions with their full tax team.

Know the Core Estate Planning Documents

Eaton Vance

Eaton Vance

Eaton Vance

The tax code is always evolving. Wealthy clients expect help and guidance in understanding how to plan for the estate and gift taxes—and how to avoid potential missteps.

Prefer to save for later?

Key Takeaway

Combined Gift and Estate Tax Exemption*

2023 exemption for assets passed during life or upon death:

$12,920,000 for individuals.

$25,840,000 for a married couple.

Without proper planning, clients with assets that surpass these amounts can expect their estates to pay a federal tax of 40% in addition to any applicable state taxes.

Annual Exclusion

Gifts up to the federal gift tax annual exclusion of $17,000 per recipient can be made annually without using a portion of the lifetime exemption amount.

Next Step

Identify clients who would benefit from advanced planning and be a catalyst for planning discussions with their full tax team.

Know the Core Estate Planning Documents

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