Why use my lifetime exemption now instead of at death?

Using your exemption at death shelters a fixed dollar amount. Using it during your lifetime shelters the gifted assets plus all their future growth. For estates above the exemption, that growth could otherwise face federal estate tax at 40%.

Is there still a reason to act now that the exemption is permanent?

Yes. The One Big Beautiful Bill Act removed the scheduled 2026 drop, but the case for lifetime gifting rests on moving future growth out of your estate. That benefit grows with every year the assets are outside it. Congress can also change the law in the future.

What happens to my gifts if Congress lowers the exemption later?

IRS regulations finalized in 2019 generally protect exemption you've already used if the exemption later drops, though certain transfers may not qualify. Exemption you haven't used has no such protection.

Should I gift appreciated assets if my heirs lose the step-up in basis?

It depends on the asset. For taxable estates, the estate tax saved on future growth often outweighs the capital gains tax heirs may owe. Cash, high-basis assets, and assets with strong growth potential tend to make the best gifts, while deeply appreciated assets may be better held for the step-up.

Which is better: a GRAT or a sale to a grantor trust?

Both can move growth out of your estate while using little exemption. A GRAT can use almost no exemption but loses its benefit if you die during the term. A sale to a grantor trust generally requires seed funding but can accommodate larger transfers and GST planning. Your wealth advisor can help you compare them.

Can I use my exemption and still keep access to the assets?

Married couples often use a spousal lifetime access trust, or SLAT. One spouse gifts assets to a trust that can make distributions to the other spouse, which keeps indirect access for the family. That access can end with the beneficiary spouse's death or a divorce.

Where can I learn more about tax-free gifting options?

Mercer Advisors covers annual exclusion gifts, gifts to spouses and charity, and direct payments for tuition and medical bills in “Tax-Free Gifting in 2026: What Financial Givers Should Know.” Talk with your wealth advisor for guidance specific to your situation.

Impact of New Laws Archives

Estate Planning Guide

Dynasty Trusts and Multigenerational Wealth Transfer: A Post-OBBBA Guide

The OBBBA made the $15 million estate tax exemption “permanent.” This guide explores how dynasty trusts, combined with generation-skipping transfer (GST) tax planning and coordinated trust strategies, can help protect and transfer wealth across multiple generations.

Estate Planning Article

Lifetime Gift Tax Exemption: Why Using It Now Could Offer Advantages Over Waiting

For taxable estates, using your lifetime exemption now can shelter future growth from estate tax. See how timing, trusts, and GST planning may shape the outcome.

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The SECURE 2.0 Act of 2022 introduced significant updates to retirement savings rules — automatic enrollment, emergency savings accounts, and enhanced catch-up contribution limits — that can meaningfully change how you plan for the future.

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You may think you’re managing your taxes effectively when you file each spring, but are you sure? Learn the difference between tax preparation and proactive tax planning.

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Trump Accounts (Section 530A) let families invest up to $5,000 a year for any child under 18 — plus a $1,000 federal pilot contribution for kids born 2025 to 2028.

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New parents can build a stronger financial foundation with Trump Accounts, 529 plans, insurance, adoption credits, and estate planning basics.

Retirement Article

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Learn how RMDs work — from start ages and calculation methods to Roth account rules, inherited IRA requirements, and tax-smart planning strategies.

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Trump Accounts and Gift Tax: What Parents Need to Know

The IRS established a safe harbor for qualifying Trump Account contributions — but complex giving situations require careful planning.

FAQs

Estate Planning FAQ

Which state is best for a dynasty trust?

See the answer

Estate Planning FAQ

What is the difference between a dynasty trust and a spousal lifetime access trust?

See the answer

Estate Planning FAQ

How do I learn more about the One Big Beautiful Bill Act estate tax changes?

See the answer

Estate Planning FAQ

Where can I find a wealth advisor to help me set up a dynasty trust?

See the answer

Estate Planning FAQ

Is it worth funding a dynasty trust with appreciated assets instead of cash?

See the answer

Estate Planning FAQ

Should I set up a dynasty trust after the One Big Beautiful Bill Act made the exemption permanent?

See the answer

Estate Planning FAQ

What is the generation-skipping transfer tax exemption for 2026?

See the answer

Estate Planning FAQ

What is a dynasty trust and how does it function?

See the answer

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Impact of New Laws

Dynasty Trusts and Multigenerational Wealth Transfer: A Post-OBBBA Guide

Lifetime Gift Tax Exemption: Why Using It Now Could Offer Advantages Over Waiting

Episode 528 – Financial Considerations When a Baby is on the Way