How Regular Families Could Be Affected if Tax Cuts Expire

You don’t have to have a large estate to see a significant impact on your taxes once provisions in the 2017 Tax Cuts and Jobs Act sunset (if Congress doesn’t act).

A young couple sits at their dining room table while she keeps their toddler occupied and he works on his laptop.
(Image credit: Getty Images)

Much will be written about the coming sunset of the 2017 Tax Cuts and Jobs Act (TCJA), mostly in relation to the diminishment of the lifetime generation-skipping, estate and gift tax exemptions. But this potential outcome may have little relevance to you if your net estate is less than the $7 million post-TCJA exemption (or $14 million for a married couple). But you should be concerned in regard to several other more relevant sunsetting provisions.

Since the deadline for passing an extension to the TCJA is Dec. 31, 2025, if you are alarmed by the following information, you may want to contact your representatives in Congress to stress the importance of a bipartisan agreement. The need to address this issue will be mostly missed by the media until it is too late. The foreseeable news cycles are cluttered with campaign-related smoke and mirrors, accusations, threats and litigation that serve to further alienate members of Congress from one another at a time when cooperation is essential to remedy the coming calamity.

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Timothy Barrett, Trust Counsel
Senior Vice President, Argent Trust Company

Timothy Barrett is a Senior Vice President and Trust Counsel with Argent Trust Company. Timothy is a graduate of the Louis D. Brandeis School of Law, past Officer of the Metro Louisville Estate Planning Council and the Estate Planning Council of Southern Indiana, Member of the Louisville, Kentucky, and Indiana Bar Associations, and the University of Kentucky Estate Planning Institute Committee.