When discussions turn to what the United States Congress is doing, people usually fall into one of two camps:

  • “Why isn’t Congress doing something about _____?”
  • “ I think it is always good news when Congress does nothing!”

But for 2025, it is both anticipated and somewhat necessary that Congress do something with the Internal Revenue Code.  As you are probably aware, the original Trump Tax Act expires by its terms at the end of this year, which would revert to the tax code to how it existed immediately prior to that 2017 act, the Tax Cuts and Jobs Act.  If Congress did nothing in 2025,  the estate tax exemption would decrease to what it would have been had the act never passed.  Indexed for inflation, that is approximately $7 million per person; therefore, $14 million for a married couple.  If you have less than $14 million, you can probably safely stop reading this article without another thought.

If you were safely below the estate tax exemption of approximately $28 million, but might find yourself taxable with an estate value between $14 and $28 million, you should be very concerned with what Congress is doing this year. At this point, the answer is very much up in the air.

All tax bills start in the United States House of Representatives, and various bills have been filed including:

  • HR601 that cuts the estate tax rate in half;
  • HR1301 that entirely repeals the federal estate tax and generation-skipping transfer tax.

There are other bills that amend and tweak the estate tax provisions, without fully repealing them.

With no bill having been reported out of the Ways and Means Committee, it is simply way too early to predict what Congress might do. Which begs the question, can one ever predict what Congress will do?

Stay tuned, and we will keep you informed.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, specific tax, legal or accounting advice. We can only give specific advice upon consulting directly with you and reviewing your exact situation.