How to help clients use the $28M estate tax exemption before it’s too late

By December 31, 2025, the current estate and gift tax exemption—now $13.99M per person or $27.98M per couple—is scheduled to be cut roughly in half, unless Congress steps in. That gives advisors and their clients a narrowing window to make strategic moves before the opportunity fades.

This isn’t just another deadline. It’s one of the most favorable wealth transfer moments in U.S. history, and it won’t last. The time to act is now.

What’s at stake—and why waiting isn’t an option

Right now, clients can transfer up to $13.99 million per person—or $27.98 million per couple—without triggering federal estate or gift taxes. But unless Congress steps in, that exemption will be cut nearly in half when the clock strikes midnight on December 31, 2025.

If nothing changes, the exemption will roll back to pre-TCJA levels—roughly $7 million per person, $14 million per couple, adjusted for inflation.

One bill on the table—the proposed “One Big Beautiful Bill” (OBBBA)—would raise the exemption to $15M per person, $30M per couple. But its future is uncertain. And for advisors, waiting on legislative outcomes isn’t a strategy.

Planning takes time. Between drafting trusts, valuing assets, coordinating with legal teams, and guiding client decisions, the runway from start to finish often stretches three to six months or more. Waiting until Q4? That might be too late.

For ultra-high-net-worth families, the difference between acting now and standing still could amount to millions in avoidable estate taxes.

Strategic moves to lock in the exemption

With the $28 million exemption window narrowing, it’s time to move from planning to action. Advisors are in a unique position to help clients take advantage of today’s limits while balancing three priorities: preserving income, maintaining access, and guiding future growth.

Here are some of the most effective tools for doing just that:

GRATs (Grantor Retained Annuity Trusts)

Great for assets with strong growth potential, such as private equity or concentrated stock positions. A GRAT allows the grantor to retain an income stream while passing any growth above the IRS hurdle rate to beneficiaries with minimal gift tax.

SLATs (Spousal Lifetime Access Trusts)

An excellent option for clients who want to remove assets from their estate but still maintain indirect access. One spouse creates a trust that benefits the other and their descendants, offering both tax benefits and ongoing flexibility.

IDGTs (Intentionally Defective Grantor Trusts)

This strategy involves selling assets to a trust in exchange for a promissory note. The client continues to pay income taxes on the trust’s earnings, which allows faster asset growth outside the estate without using additional exemption.

FLPs and LLCs (Family Limited Partnerships or Limited Liability Companies)

Ideal for family businesses and investment portfolios. These structures allow clients to transfer limited interests at discounted values, while retaining control as general partners or managing members. The discounts help stretch the available exemption further.

CLATs and Dynasty Trusts

For clients with philanthropic goals or multi-generational planning needs, CLATs allow annual distributions to charities, with the remainder eventually passing to heirs. If the trust outperforms IRS projections, those transfers can be highly tax-efficient. Dynasty trusts, on the other hand, secure today’s exemption—including GST exemption—and preserve wealth over multiple generations.

Other Smart Moves

Not every solution needs to be complex. Don’t overlook straightforward strategies like:

• Annual exclusion gifts
• 529 plan superfunding
• Direct tuition or medical payments
• Life insurance held in ILITs

Each client’s goals, risk comfort, and family dynamics are different. That’s why the most effective planning is personalized. The role of the advisor is not just to recommend strategies, but to craft a plan that reflects what matters most—while there’s still time.

Timing and trust: The advisor’s role

This moment isn’t just about getting documents signed. It’s about helping clients navigate uncertainty with clarity and confidence. Advisors who lead both the process and the conversation will earn trust that extends well beyond the current exemption window.

Here’s how to step into that role:

Start early to stay ahead

Estate planning is complex. Between drafting documents, valuing assets, and coordinating with legal, tax, and insurance professionals, execution can take months. For many clients, three to six months is typical. Waiting too long risks missing the deadline altogether.

Use scenario planning to bring clarity

Clients don’t need perfect answers to make good decisions. By showing the potential impact under both sunset and extension scenarios, advisors can reduce stress and help clients move forward with confidence.

Balance access with control

A common concern is the fear of giving up too much. Tools like SLATs offer indirect access, and more advanced trusts can be structured with flexible terms and powers. Clients need to see that good planning isn’t about losing control—it’s about shaping it on their own terms.

Focus on family readiness

It’s not just about tax exposure. Conversations around whether heirs are prepared to receive wealth can be just as important. When handled thoughtfully, these discussions strengthen client relationships and position the advisor as a true long-term partner.

Keep the bigger picture in view

Even if the exemption stays where it is, thoughtful estate planning still matters. Clients want more than tax savings—they want clarity, protection, and peace of mind. Great advisors lead with purpose, not just numbers.

Cement Trust—Not Just Plans

The exemption deadline is creating urgency, but the real opportunity runs deeper. Clients aren’t only seeking tax expertise. They’re looking for a steady hand—someone who can guide their family through high-stakes decisions, protect what matters most, and bring clarity when the way forward feels uncertain.

This is your chance to lead with confidence. To prove your value when it matters most. And to build trust that lasts well beyond any deadline. Not by rushing paperwork, but by showing up early, staying engaged, and being the first person your clients turn to when the stakes are high.

Built to navigate complexity

At Estate Guru, we designed our platform for moments like this—when timelines are tight, expectations are rising, and the work requires more than templates.

We’ve built the tools you need:

• Attorney-led workflows that flex with complexity and state-specific rules
• Smart intake and dashboards to keep your team and your clients aligned
• Advisor-first design that protects your brand and keeps you in control

Whether you're creating advanced strategies for ultra-high-net-worth families or managing dozens of plans at once, Estate Guru helps you move quickly—without compromising legal quality.

This isn’t just software. It’s a platform built to make estate planning your strategic advantage.