Gift tax

[Tim]

I think you are asking if one can gift up to current limits now (e.g., ~$12M single or $24M couple) and avoid clawback later if the limits drop/revert in 2026 to $6M/$12M? If so, yes. Tl;dr if you gift today above the post 2026 limits then in effect your estate tax/gift exemption post 2026 will be the higher of the limit or the total amount you previously gifted.

Unless the wise people decide to specifically make it retroactive upon death. They can tax how they wish if they package it as benefiting the rich and helping the masses.

[Larry Ragman]

Unless the wise people decide to specifically make it retroactive upon death. They can tax how they wish if they package it as benefiting the rich and helping the masses.

True. The IRS says they will follow the path I outlined, but of course Congress could change the rules. In general though I’d suggest people plan on the rules as they exist.

[Tim]

True. The IRS says they will follow the path I outlined, but of course Congress could change the rules. In general though I’d suggest people plan on the rules as they exist.

Yes. But my thoughts are that Estate Tax/gifts would be the next area that “fair share” would not generate as much political resistance.
You spend it
Beneficiaries spend it
Government spend it

My take is the government appetite for spending on debt interest is increasing rapidly due to the debt interest costs.
Bottom feeders! Tons of voters would favor a 100% tax over x dollar amount.

[Craigy]

Yes. But my thoughts are that Estate Tax/gifts would be the next area that “fair share” would not generate as much political resistance.
You spend it
Beneficiaries spend it
Government spend it

My take is the government appetite for spending on debt interest is increasing rapidly due to the debt interest costs.
Bottom feeders! Tons of voters would favor a 100% tax over x dollar amount.

When the exclusion amounts were much lower the political resistance was much higher.

In relatively recent history the exclusion amounts were sub ~$600k which meant that if you owned a house, weren't a spendthrift and had a 401k, you likely had an estate tax problem.

Now with the exclusion over $10M it may seem like only a rich person's problem, but these days the main donor base for the historically-opposed party is these rich people.

[Tim]

When the exclusion amounts were much lower the political resistance was much higher.

In relatively recent history the exclusion amounts were sub ~$600k which meant that if you owned a house, weren't a spendthrift and had a 401k, you likely had an estate tax problem.

Now with the exclusion over $10M it may seem like only a rich person's problem, but these days the main donor base for the historically-opposed party is these rich people.

Today’s political choice: money or votes. In the old days this was called influence peddling. Now it’s called a fundraising event.