Hi, I'm Desiree Eddington, and I'm a trust officer at Old National Wealth Management. Today, I have Mike Pitts with me, Mike is the director of tax strategies here at Old National Bank. Mike, last year's tax bill increased the amount an individual can give tax-free from $5.5 million to over $11 million. I understand there's a new IRS ruling regarding this exemption, can you talk to us a little bit about it?
Yeah, that's right, Desiree. Last year's tax bill had increased the amount that you could give tax-free, from $5.5 million to $11 million. However, there was some uncertainty about what would happen once the law expired at the end of 2025. So now, the IRS has come out and given us some clarity that, if you go ahead and make those gifts up to $11 million, they will remain tax-free even after that law expires.
That is great news, I tell ya, for anybody that would have an opportunity to want to make a gift to their children, their grandchildren, or even establish a trust for their benefit.
Well, that's a great point, I'm glad you brought that up. Not only was the gift tax exemption increased, but the generation skipping transfer tax as well. And so, what that means to our clients is that they can make those gifts to kids, to grandkids and probably the most powerful way to make those gifts is to a trust, where that wealth can pass from generation to generation to generation, tax-free.
Thanks, Mike. If you'd like more information regarding today's topic, we encourage you to reach out to one of our Old National Wealth Management professionals. If you'd like more details regarding this topic, please click on the link located at the bottom of this video, thank you.
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