Trump Tax Cuts Expire After 2025: Are You Ready?

As the presidential election starts to heat up, expect to hear more about taxes on the campaign trail this summer and fall. Why? There are potentially sweeping tax law changes on the horizon.

Most Americans have paid lower income taxes since 2018, due to former President Donald Trump’s Tax Cuts and Jobs Act of 2017.

Yet, many of these tax breaks are set to expire next year, unless Congress acts.

The 2017 tax law temporarily changed major provisions like lower tax brackets, a higher standard deduction and an increase to a number of deductions. After the Trump tax cuts expire in 2025, here’s just a few of the taxes that will increase: individual tax bracket rates, pass-through rates, health insurance surcharges, the global minimum tax, Inflation Reduction Act taxes and housing taxes.

High Net-Worth Americans Face Changes to Estate Tax Law

For ultra-wealthy Americans there are looming changes that could substantially limit the amount that families can transfer tax-free to the next generation. For example, in 2024 the tax-free limits on gifts increased to $13.61 million per person. Once the Trump era tax cuts expire, that limit will fall by about half in 2026, without new legislation from Congress.

Given the sweeping tax changes that are on the horizon, many high net worth individuals are making lifetime gifts now to remove assets from their estate.

Gold Is an Excellent Vehicle for the Private Preservation of Wealth.

With the estate tax level set to fall nearly in half after 2025, that significantly reduces the wealth you can give to your heirs, as the government will take a much larger portion of your family’s money.

There is a solution. Gold bullion and rare coins have long been touted by trust attorneys as an efficient and discreet method of transferring wealth from one generation to another.

Taxes Are Set to Rise after 2025: You Still Have Time to Prepare

Americans of all income levels will face higher tax rates and lose out on a number of deductions, meaning your bill to Uncle Sam will be higher than it has in recent years. You can’t control what tax legislation Congress passes or doesn’t pass. You can control how you prepare and position your finances to limit the impact of taxes reverting back to 2017 levels.

If you take action now, you still have time to re-position some of your holdings to get in front of the expiration of the 2017 tax cuts. Contact a Blanchard portfolio manager for a confidential portfolio review – and to explore proven strategies with tangible assets to protect, preserve and grow your wealth.

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