The federal gift and estate tax exemption is currently the highest it has been since the tax was enacted over 100 years ago. President Joe Biden has proposed drastically changing the estate tax in order to raise revenues for his infrastructure plans. The Beringer Group believes that now is the time to start exploring the benefits of planning, before any proposed taxes can be passed by Congress.
Under current law, the federal estate tax exemption amount for 2022 is $11.8 million per individual — but only until Jan. 1, 2026, when the exemption amounts will retroactively be placed back to where they were prior to the tax law changes of 2018.