With the recent elections over, many advisors are fielding questions about potential changes to tax laws—especially regarding the estate tax exemption. While 2024’s election cycle may lead to new tax policies, those changes won’t happen immediately. 

The Estate Tax Timeline The newly elected Congress will start in January 2025, with several steps before any tax changes could be enacted. Only after the President submits a budget and Congress passes resolutions will committees draft tax legislation, making it unlikely that significant changes will be seen until much later. 

Why It Matters for High-Net-Worth Clients The current estate tax exemption, set to sunset from $13.61 million to $7 million per individual in 2026, has raised questions among clients. Advisors may consider starting gifting strategies now or taking a cautious approach. However, waiting until the last minute can lead to complications—both in execution and in IRS scrutiny. 

Act Now Encourage clients, especially those with charitable inclinations, to look at donor-advised funds and additional community foundation options. Early planning provides more control and avoids rushed decisions under pressure. 

At the Community Foundation of Greater Flint, we are here to assist you and your clients as the tax landscape evolves. Let us ensure your clients are ready, no matter what the future holds.