Happy New Year! 

We here at the Law Office of Gerald L. Baker strive to provide our community with key estate planning knowledge that results in a sound estate plan you can be confident with.  Following is an example of that knowledge we would like to share:

Federal Estate Tax Exclusion Reset

While the Federal estate tax is not a primary concern for most estate planning clients, however, there are some who need to be reminded that the current Federal estate tax exclusion of $12.92 million (1923) will sunset on January 1, 2026.

On January 1, 2026, the Federal estate tax exclusion will reset to $5 million dollars, but will be adjusted for inflation through 2025. The consensus seems to be that the effective exclusion will be around $7.5 million, per person. That is providing a couple a $15 million exclusion.

Gifts to a spouse have no limit, but caution should be exercised in looking at the impact of such gifts would have on his/her estate as sole surviving spouse.

If you have any concerns regarding your existing estate plan, in light of the Federal estate tax reset, or for any reason, please don't hesitate to contact us at 330-492-1001. 

We're always happy to be of service to you.

Sincerely,

Jerry Baker