Hau‘oli Makahiki Hou! We hope 2025 is filled with prosperity, vitality and good health for you and your loved ones!
If Congress doesn’t act, the federal lifetime estate tax and gift tax exemption is due to sunset at the end of 2025 and will revert back to the 2017 exemption amount of approximately $5.6 million per individual, adjusted for inflation. This would result in a significant increase in the number of estates subject to federal estate tax and a higher estate tax liability for estates already subject to the tax.
Currently per person, the Hawai‘i estate and gift tax exemption is $5.49 million and the federal lifetime estate and gift tax exemption is $13.61 million (or $27.22 million per married couple). If you are married, under the current estate tax exemption and have separate trusts, it may be a good time to explore a joint trust. A joint trust can significantly reduce or even eliminate capital gains tax for your children, should they sell inherited real estate or other appreciating assets.
If you are hedging up to the current estate tax exemption or you exceed the estate tax exemption, contact your estate planning attorney to see how possible changes to the estate and gift tax exemption may affect you.
YIM & YEMPUKU LAW FIRM
2054 S. Beretania St., Honolulu, HI 96826
808-524-0251 | yimandyempukulaw.com
Leave a Reply