Will Inheritance and Gift Tax Exemptions Change in 2021?
The increase in the exemption is set to lapse after 2025. However, the Treasury Department and the IRS issued “grandfather” regulations in 2019 allowing the increased exemption to apply to gifts made while it was in effect, if Congress lowers the exemption after those gifts.
What Does ‘Portability of Estate Tax’ Mean?
Portability first emerged as an estate planning strategy in 2011 and 2012 from the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. It was made permanent by the American Taxpayer Relief Act of 2012.