Proposed Regulations Address “Clawback” Issue
This article is a compliment of THE LAW OFFICE OF JOHANN CHAU
Written by The American Academy of Estate Planning Attorneys
Each person has a permanent exclusion amount of $5 million which they can give during life or at death. That amount is inflation adjusted. The Tax Cuts and Jobs Act doubled that exclusion for years 2018 through 2025. In 2018, the inflation adjusted, temporarily doubled, exclusion is $11.18 million. Shortly after passage, questions arose regarding hypothetical taxpayers who utilized the doubled exclusion during their lifetime and then died in 2026 or later, when the exclusion reverts to the standard $5 million (adjusted for inflation).