The Tax Cuts and Jobs Act of 2017 brought sweeping changes to the tax code. But here’s what many families don’t realize: most of those changes were temporary. Unless Congress acts, major provisions will expire on December 31, 2025—and that deadline could dramatically affect your estate plan.
At Berg Bryant Elder Law Group, we’re helping Northeast Florida families prepare for these changes before time runs out. Here’s what you need to know about the TCJA sunset and what it means for protecting your family’s legacy.
The Big Change: Estate Tax Exemptions Getting Cut in Half
The most significant estate planning impact involves the federal estate and gift tax exemption. This is the amount you can transfer to heirs during your lifetime or at death without paying federal estate or gift taxes.
Under current law, the 2026 exemption sits at $13.99 million per person—$27.98 million for married couples. But when the TCJA provisions expire, this amount will drop to approximately $7.25 million per individual and $14.5 million per couple.
For families with estates between $7 million and $14 million, this change moves them from paying zero estate tax to potentially owing millions. The federal estate tax rate is 40%, meaning this sunset could cost some families nearly $3 million in additional taxes.
Who This Actually Affects
You might be thinking, “My estate isn’t worth $7 million—this doesn’t apply to me.” But take a closer look at what counts toward your taxable estate:
- Your home’s current value (not what you paid for it)
- All retirement accounts (IRAs, 401(k)s, 403(b)s)
- Life insurance death benefits
- Investment accounts
- Business interests
- Real estate holdings
- Personal property
A paid-off home in Jacksonville or St. Augustine, combined with retirement savings and a life insurance policy, can easily push an estate past the threshold. Many families we work with are surprised to learn they’ll be affected by these changes.
The Gifting Window That’s Closing
Here’s the opportunity: gifts made before December 31, 2025, using the current higher exemption won’t be “clawed back” when the exemption drops. The IRS has confirmed this explicitly.
This creates a limited window for wealthy families to transfer significant assets to the next generation without tax consequences. But implementing these strategies takes time—you can’t wait until December to start planning.
Some families are considering:
- Direct gifts to children or grandchildren. Using the current $13.99 million exemption, you can transfer substantial wealth now, removing it from your taxable estate before the exemption drops.
- Funding irrevocable trusts. These can remove assets from your estate while maintaining some control over how and when beneficiaries receive distributions. This is particularly valuable for families concerned about asset protection or beneficiaries who aren’t ready to manage large inheritances.
- Spousal Lifetime Access Trusts (SLATs). For married couples, these trusts allow one spouse to gift assets while the other spouse retains access if needed—offering both estate tax reduction and flexibility.
The catch? These strategies must be implemented correctly, documented properly, and completed before the deadline. Rushed planning often leads to mistakes.
Income Tax Changes That Affect Estate Decisions
The TCJA sunset isn’t just about estate taxes. Changes to income tax brackets will also influence estate planning decisions.
In 2026, the top federal income tax rate rises from 37% to 39.6%. Tax brackets will shift, likely pushing more taxpayers into higher rates. The standard deduction gets cut roughly in half, and several itemized deductions become more valuable again.
These changes affect strategies like:
Roth conversions.
Converting traditional IRAs to Roth IRAs in 2025, while tax rates are lower, could save your heirs substantial tax bills later. Once you pass, your beneficiaries typically must withdraw inherited IRAs within 10 years—potentially during their peak earning years. Tax-free Roth distributions can be far more valuable than taxable traditional IRA distributions.
Charitable planning.
The charitable deduction limit for cash gifts to public charities drops from 60% to 50% of adjusted gross income after 2025. If you’re planning large charitable gifts, timing matters.
Business succession planning.
The 20% deduction for qualified business income (the Section 199A deduction) also expires after 2025. This affects whether it makes sense to transfer business interests now versus later.
What Florida Families Should Consider Now
Florida’s lack of state income and estate taxes provides significant advantages. But federal changes still matter, and proactive planning is essential.
Review your current estate plan.
When was the last time you looked at your will, trusts, and beneficiary designations? Life changes—deaths, births, divorces, property purchases—can all affect your plan. The TCJA sunset makes this review even more critical.
Calculate your potential estate tax exposure.
Add up all your assets at current fair market values. Don’t forget retirement accounts, life insurance, and business interests. If you’re approaching $7 million (or $14 million for couples), the sunset will affect you.
Consider your timeline.
Implementing sophisticated estate planning strategies isn’t instantaneous. Trusts must be drafted, funded, and properly documented. Real estate needs to be appraised and transferred. This process can take weeks or months.
Think about your family’s needs beyond taxes.
Estate planning isn’t just about minimizing taxes—it’s about protecting assets, providing for loved ones, and ensuring your wishes are honored. Sometimes the best plan involves some tax cost if it better serves your family’s long-term interests.
Watch for legislative changes.
Congress could act to extend TCJA provisions, modify them, or let them expire as scheduled. Staying informed helps you make timely decisions.
Don’t Wait Until It’s Too Late
The end of 2025 will create a bottleneck. Attorneys across the country will be overwhelmed with clients rushing to implement strategies before the deadline. Rushed planning increases the risk of errors and limits your options.
Starting now gives you time to:
- Properly assess your situation
- Explore multiple strategies
- Implement plans thoughtfully and correctly
- Adjust if circumstances change
- Avoid the year-end rush
Get Started With Your Estate Plan Review
The TCJA sunset represents a significant shift in estate planning. Whether you’re affected by the estate tax changes, income tax adjustments, or both, taking action now protects your options.
At Berg Bryant Elder Law Group, our Florida Board Certified Elder Law Attorneys help families throughout Northeast Florida create estate plans that protect assets, minimize taxes, and provide peace of mind.
We serve families in Jacksonville, Jacksonville Beach, Orange Park, St. Augustine, and surrounding communities in Duval, Clay, St. Johns, and Nassau Counties.
Ready to review your estate plan before the deadline? Visit our website to schedule a consultation and discuss how the TCJA sunset affects your family’s future.
This blog post is for informational purposes only and does not constitute legal or tax advice. Estate planning and tax laws are subject to change. Consult with qualified professionals to discuss your specific situation.
Author Bio
Kellen Bryant, Esq.
Founder
Florida Bar Board Certified Elder Law Attorney, Kellen Bryant focuses his law practice on advising and helping caregivers with a particular focus on asset protection and preservation from long-term care costs, creditors, and predators. Kellen Bryant is AV Preeminent® Rated, meaning his attorney peers rated him at the highest level of professional excellence. Kellen Bryant was nominated and selected as a Super Lawyer, Rising Star: 2022.
