If you’ve worked hard to build wealth, the estate tax — sometimes called the “death tax” — can feel like a final unfair blow. The proposed Death Tax Repeal Act of 2025 (DTRA) could eliminate this tax, significantly changing how families pass down wealth.
What Is the Estate Tax?
The estate tax currently applies to estates over $13.61 million, taxing assets at 40%. Without Congressional action, the exemption will fall to around $6–7 million in 2026. Families with significant assets, especially business owners and landowners, often face the painful choice of selling off assets to pay the tax.
Supporters of repeal argue it prevents unfair double taxation; critics warn it could increase wealth inequality and reduce funding for vital government services.
How Would Repeal Affect You?
- Simplified Estate Planning: Without the estate tax, complex planning strategies might no longer be necessary.
- Focus on Income Taxes: Planning would shift to minimizing capital gains for heirs.
- Charitable Giving Changes: Donations may be guided more by personal values than tax benefits.
If your estate is near or above the exemption threshold, now is the time to review your strategy.
Planning Ahead in Uncertain Times
Even if the DTRA passes, tax laws are always subject to change. That’s why it’s essential to have a flexible estate plan focused not just on minimizing taxes, but also on securing your family’s legacy.
At Jason R. Breit, Esq., P.C., we use a Life & Legacy Planning® approach, providing proactive, lifelong guidance to ensure your plan adapts to your family’s evolving needs.
How We Can Help
We don’t just prepare documents; we create plans that work when your family needs them most. Start with a Life & Legacy Planning® Session to get organized and make the best choices for your loved ones.
This article is a service of Jason R. Breit, Esq., P.C., a Personal Family Lawyer® Firm. We don’t just draft documents; we empower you to make informed decisions about life and death, for yourself and those you love. We invite you to begin by calling our office today to schedule your Family Wealth Planning Session.
The content is sourced from the Personal Family Lawyer company for use by Personal Family Lawyer firms. This material is for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking legal advice specific to your needs, please obtain such advice separately.
