Wealth Planning Updates: 2025 Legislation
Happy New Year! I hope your new year is off to a great start. The year 2025 will see a busy legislative agenda with Republicans holding the majority in both chambers of Congress and the presidency. One of the most significant financial related items on the agenda will be the expiration of the tax provisions from the 2017 Tax Cuts and Jobs Act (TCJA) at the end of the year.
Some of the TJCA provisions set to expire include lower tax brackets and rates for individuals, the increased standard deduction and child tax credit, the Section 199A deduction on pass-through income, and the $10,000limitation on SALT deductions. Additionally, the estate tax exemption would likely be halved. Extending the expiring provisions is estimated to cost approximately$4.6 trillion over 10 years. Given the country’s debt and deficit issues, Republicans are debating whether the cost should be offset by revenue measures such as corporate tax changes, spending cuts or possibly tariffs.
Watching the legislative process unfold this year will be quite intriguing. We will keep you informed as tax policies evolve and their implications for our clients become clearer.
In addition to these federal changes, Georgia has introduced significant new legislation affecting estate planning. Georgia's SB 420 law authorizes Transfer on Death (TOD)deeds, allowing real estate to be transferred upon death. The deed must be signed by the owner and designate a beneficiary, with an affidavit filed within nine months of the owner's death. The designation is revocable, and the owner remains the legal owner until death. However, uncertainty remains about protection from Medicaid Estate Recovery and creditor claims.
If you have any questions or wish to discuss any of the topics we’ve covered, please don’t hesitate to reach out. We’re here to guide you through these changes and help ensure your financial strategies remain resilient.
