Navigating the Sunset of the Federal Estate Tax Exemption Key Considerations in Estate Planning

Navigating the Sunset of the Federal Estate Tax Exemption: Key Considerations in Estate Planning

co-authored by Lauren Gosselin 

While we may only be in the middle of 2024, the end of 2025 quickly approaches. Estate planning in the United States faces a pivotal juncture with the looming sunset of the federal estate tax exemption. For families and individuals engaged in estate planning, understanding the implications and preparing accordingly has never been more crucial. Here’s a closer look at what the sunset means and how working with an experienced attorney can help navigate this evolving landscape.

Understanding the Federal Estate Tax Exemption

Created by the Tax Cuts and Jobs Act, passed in 2017, it doubled the federal estate tax exemption, initially set at $10 million per individual in 2017. The exemption currently shields individual estates up to approximately $13.61 million from federal estate taxes. This exemption has been instrumental in shaping estate planning strategies, offering significant opportunities for wealth preservation and transfer.

The Sunset Provision

The current exemption is set to expire at the end of 2025, reverting to around $5 to $7 million adjusted for inflation unless legislative action extends or modifies it. This change has profound implications for families with larger estates, potentially subjecting more wealth to estate taxes and necessitating careful planning to minimize tax liabilities.

Impact on Estate Planning Strategies

For families and individuals with estates exceeding the future exemption threshold, proactive planning becomes paramount. Estate planning strategies such as lifetime gifting, establishing trusts, and charitable giving can play a crucial role in optimizing tax efficiency and preserving wealth for future generations.

An experienced estate planning attorney can provide invaluable guidance in navigating these strategies to align with individual goals and minimize tax exposure.

Collaborating with an Estate Planning Attorney

Working with a knowledgeable estate planning attorney is essential during this transitional period. Attorneys specializing in estate planning can offer tailored advice based on current tax laws and anticipated changes, ensuring that plans are both tax-efficient and flexible enough to accommodate future uncertainties.

As the landscape of estate taxes evolves, adaptability and preparedness are key. Estate planning is not a one-time event but an ongoing process that requires periodic review and adjustment in response to changing laws, family dynamics, and financial circumstances. Engaging with an attorney regularly ensures that estate plans remain current and effective in achieving long-term objectives.


The sunset of the federal estate tax exemption at the end of 2025 marks a significant milestone for estate planning in the United States. By proactively working with a knowledgeable estate planning attorney, families and individuals can navigate these changes with confidence, optimizing their estate plans to preserve wealth and minimize tax liabilities for future generations. As we approach this critical juncture, staying informed and proactive will be essential in securing a stable financial future and ensuring the smooth transfer of assets according to individual wishes.

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