Business owners, in particular, should consider transferring ownership interests before the exemption decreases. By doing so they can maximize their tax efficiency and take advantage of valuation discounts they’ ll receive when they have only minority control and their shares are less able to be sold, discounts that further reduce taxable estate values. If they wait until after 2025, they might face increased estate tax exposure.
More individuals may turn to charitable giving as a tax-efficient option. Because estates can receive an unlimited charitable deduction, your clients might want to allocate their excess wealth to charities rather than paying estate taxes, which is a powerful planning strategy. By using options such as donor-advised funds and charitable remainder trusts, they can achieve their philanthropic objectives while reducing taxable estate values.
Historical Precedents And Legislative Uncertainty
In the past, estate tax exclusion amounts only went up, but 2026 could mark the first time in U. S. history that the exclusions are cut. While Congress could still preserve the higher exclusions with new legislation, estate planners must proceed under the assumption that lawmakers might allow them to expire and for less money to be shielded from estate taxes.
High-net-worth individuals and families should consult with estate planning professionals to explore strategies that align with their family and financial goals. By taking action before the end of 2025, taxpayers can better position themselves to minimize tax liabilities and ensure a smooth transfer of wealth to future generations.
MARY P. BURNS, ESQ., is vice president of estate planning and senior trust counsel at Johnson Investment Counsel.
Johnson Investment Counsel cannot promise future results. Any expectations presented here should not be taken as any guarantee or other assurance as to future results. Our opinions are a reflection of our best judgment at the time this material was created, and we disclaim any obligation to update or alter forward-looking statements as a result of new information, future events or otherwise. Information contained herein is current as of 6 / 24 / 2025. It is subject to legislative changes and not intended to be legal or tax advice. Please consult your qualified tax adviser regarding your specific circumstances. The material is provided for informational purposes only on an“ as is” basis. Its completeness and accuracy are not guaranteed.
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