Estate Planning: A Rare Moment of Certainty
Another standout provision is the permanent estate tax exemption of $15 million starting in 2026, indexed for inflation moving forward.
”This is a big deal for families thinking about wealth transfer,” Joe explained. ”The estate tax exemption has been a moving target for years. Having a fixed number, especially at this level, gives families something solid to plan around.”
Without this legislation, the exemption was set to be cut in half starting in 2026, which could have potentially triggered new estate tax liabilities for high-net-worth households.
Why Now Is the Time to Meet with Your CPA
Although the bill is brand new, Joe says now is the perfect time to sit down with your financial advisor or CPA. ”Tax planning shouldn’t start in December, it should start now. You want to know what moves to make in 2025 before it’s too late,” he said. ”I had a client meet with their CPA in June and they said it was the first time they’ve ever done that. I was shocked but impressed.” He also emphasized that while some provisions are permanent, others, like the car loan interest deduction, expire in 2028, and the SALT deduction cap reverts back in 2030. ”Don’t build your long-term plan on temporary rules. Plan for flexibility.”
Final Advice: Be on the Informed Side
Joe wrapped our conversation with one simple but powerful reminder: ”There’s an old court case that says there are two tax systems in America: one for the informed and one for the uninformed. We’re here to make sure our clients stay on the informed side.”
What You Can Do Next
- Connect with your financial advisor to see how the bill impacts your 2025 strategy
- Review your current deductions to identify new opportunities
- Start early – the sooner you plan, the more options you’ll have
- Consider long-term vs short-term provisions when making big decisions
At SouthState, we’re here to help you navigate these changes with confidence and clarity. If you have questions about how this legislation affects your financial future, reach out to your advisor. We’re ready to guide you forward.
