{"id":1474,"date":"2025-06-11T21:36:23","date_gmt":"2025-06-11T21:36:23","guid":{"rendered":"https:\/\/iqeq.com\/us\/insights\/the-golden-era-of-estate-planning-set-to-continue\/"},"modified":"2025-06-16T08:06:33","modified_gmt":"2025-06-16T08:06:33","slug":"the-golden-era-of-estate-planning-set-to-continue","status":"publish","type":"post","link":"https:\/\/iqeq.com\/us\/insights\/the-golden-era-of-estate-planning-set-to-continue\/","title":{"rendered":"The golden era of estate planning set to continue?\u00a0"},"content":{"rendered":"
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By Geoff McDonald, VP, Senior Trust Officer, U.S.<\/span><\/i>\u00a0<\/span><\/p>\n

In the United States, the 2017 Tax Cuts and Jobs Act (TCJA) significantly impacted estate planning<\/a>, temporarily doubling the estate tax exemption to $10 million per individual, as adjusted for inflation.\u00a0 For 2025, the current Federal exemption is a historic $13.99 million, allowing married couples to transfer nearly $28 million to the next generation estate tax free.\u00a0 This increase has ultimately led to what many have called the \u201cGolden Era\u201d of estate planning.\u00a0<\/strong><\/p>\n

However, all good things come to an end, right?\u00a0 At least that\u2019s what many of us have been planning for over the best part of a decade\u2026<\/span>\u00a0<\/span><\/p>\n

Sunset planning<\/h2>\n

The TCJA\u2019s increased exemption is temporary and was originally slated to sunset on December 31, 2025.\u00a0 Without a sweeping act from Congress, the exemption is set to revert to its pre-TCJA inflation-adjusted level in 2026. That 2026 exemption amount is expected to be around $7 million per individual.\u00a0<\/span>\u00a0<\/span><\/p>\n

The looming sunset of the current exemption has been a call to action for (ultra-)high-net-worth individuals to utilize this historic exemption opportunity while they can, by making completed gifts to irrevocable trusts.\u00a0 In a nutshell, the enhanced exemption amounts have allowed (U)HNW individuals to gift assets into irrevocable trusts up to the current exemption amount, with those gifts presumed to be grandfathered in if the exemption falls in the future. The timing and execution of many individual estate plans were largely driven by the exemption sunset, as well-advised individuals were encouraged to \u201cuse it before you lose it\u201d.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Well, this sunset all of us trust and estate professionals have been preparing for may not be happening after all.<\/span>\u00a0<\/span><\/p>\n

The One Big Beautiful Bill Act<\/h2>\n

In a move that sent shockwaves through the trust and estate planning industry, the \u201cOne Big Beautiful Bill Act\u201d recently took a major step forward with the House approving the legislative package on May 22, 2025.\u00a0 The bill includes significant tax breaks that will inevitably reshape wealth transfer in America.<\/span>\u00a0<\/span><\/p>\n

Ushering in a new \u201cGolden Era\u201d of estate planning, under the bill as currently drafted, the federal estate tax exemption would permanently increase to an unprecedented $15 million per individual (or $30 million for a married couple), with annual adjustments for inflation.\u00a0\u00a0 That\u2019s a drastic shift, one that will significantly reduce the number of families that will ever have federal estate tax concerns.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Rest assured \u2013 while the sunset may be off the table, all that post-TCJA pre-sunset planning was not necessarily done in vain.\u00a0 Similarly, regardless of whether the bill actually makes its way through the Senate, there are still many reasons to revisit your estate planning objectives and consider creating\/funding an irrevocable trust.<\/span>\u00a0<\/span><\/p>\n

\u201cDon\u2019t let the tax tail wag the dog\u201d<\/h2>\n

It\u2019s a phrase most of us in the trust and estate field have heard many times.\u00a0 If we\u2019re being honest, many of us have probably used it in conversations with clients.\u00a0 While the mantra has been ubiquitous in estate planning for as long as we can remember, the underlying concept is just as relevant as ever.\u00a0<\/span>\u00a0<\/span><\/p>\n

Estate taxes are understandably a primary consideration when structuring an estate plan and considering transfers to irrevocable trusts.\u00a0 With the proposed $15 million exemption, most of us may never pay a penny in estate tax with or without an estate plan. However, while estate taxes are certainly a primary consideration when creating an estate plan (perhaps the most significant for some), there are many other components that should be considered.\u00a0 A proper estate plan can address several additional critical considerations, such as: intergenerational wealth planning, asset protection, potential state income\/estate tax mitigation, charitable giving, business succession planning, and providing for and protecting loved ones.\u00a0<\/span>\u00a0<\/span><\/p>\n

Now is the time to touch base with a qualified attorney and\/or financial advisor to revisit your estate plan to ensure it not only utilizes the expanded exemption, but also addresses these other critical components.\u00a0<\/span>\u00a0<\/span><\/p>\n

There remain many reasons to consider creating and funding an irrevocable trust today.\u00a0 And while you\u2019re at it, why not consider doing so in one of the most favorable jurisdictions in the country?\u00a0 You have that choice, after all \u2013 irrevocable trusts do not have to be established in the same state in which you reside.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Speak to IQ-EQ<\/h2>\n

We\u2019d be happy to discuss why it still makes sense to (i) create\/fund irrevocable trusts now, and (ii) appoint a corporate trustee in a favorable jurisdiction like New Hampshire or South Dakota.\u00a0 At IQ-EQ, we can provide you with access to both jurisdictions through our offices in Rapid City, South Dakota and Bedford, New Hampshire.<\/span>\u00a0<\/span><\/p>\n

When structured properly, New Hampshire and\/or South Dakota may be able to provide the following benefits and structures for you, your family, and your irrevocable trusts:<\/span>\u00a0<\/span><\/p>\n