Wealthy Americans looking to make tax-free gifts to their children under Republican rules passed last year would get even more flexibility under a Trump administration proposal issued on Tuesday, according to the Wall Street Journal.
> Under the regulation, people would have an easier time taking advantage of the temporary increase in the gift- and estate-tax exclusion that Congress passed last year. Before Tuesday’s proposal, some tax lawyers worried that making significant tax-free gifts now could cause an estate-tax bill for some people dying after the changes expire at the end of 2025.
> Once the regulation becomes final, it’s likely to spur a wave of wealth transfers from people worth more than $5 million to their children.
> “This is good news for people who are considering making large gifts before the end of 2025,” said Andrew M. Katzenstein, an estate attorney at Proskauer Rose LLP in Los Angeles who counsels high-net-worth clients. “People are more likely to move forward.”