by Jack Aguillard
Introduction
With the federal gift and estate tax lifetime exemption amount currently set to sunset and return to pre-Tax Cuts and Jobs Act levels in 2026,[1] tax and estate planning attorneys and other professionals are facing huge uncertainties. The gross estate threshold amount excluded from the estate tax will essentially be reduced by 50% from $10 million to $5 million.[2] However, these figures are indexed annually for inflation, so the current threshold amount in 2022 is $12.06 million.[3] Although these taxes affect a very small percentage of the American population—roughly only 0.2% of decedents paid the estate tax in recent years[4]—they still create big issues. Specifically, attorneys and advisors in this area will soon be forced to speculate as to whether Congress will revive the current lifetime exemption limit or allow it to sunset, reverting back to the pre-Tax Cuts and Jobs Act amount.