Planning for the Estate Tax Exemption Cliff
Author: Klaralee R. Charlton
| CPE Credit: |
2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2026 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
When the Tax Cuts and Jobs Act passed in December 2017, the Basic Exclusion Amount for estate and gift tax was temporarily doubled to $10M (adjusted for inflation) until 2026. As the end of this increased exemption period draws closer, taxpayers and their advisers must begin planning for how to use the temporarily increased exemption or risk forever losing this multi-million dollar tax benefit. In this course, we will review the statute and regulations governing this temporary increase and discuss popular estate planning methods for using the exemption before it expires.
Publication Date: July 2024
Topics Covered
- Details of the Estate Tax Cliff
- Using the Exemption Prior to 2026
- Post Death Tax Mitigation
Learning Objectives
- Identify the changes implemented by TCJA to the basic exclusion amount and the impact on taxpayers when the exclusion returns to pre-TCJA levels
- Identify the potential types of transfers that a taxpayer should consider to lock-in the increased exclusion and powers to avoid inclusion in the gross estate
- Identify gifting transactions and preset the pros and cons related to various gifting scenarios
- Identify tax saving opportunities and clients who should consider large gifts before 2026
- Identify the basic exclusion amount for deaths occurring in 2024
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
A basic understanding of estate tax will be helpful before taking this course.
Advance Preparation
None
