Rock House Financial Insights

Get our monthly newsletter that brings you news and tips from Rock House Financial.


The “Death Tax”

Given the current political environment, there will be a lot of press in the next 2.5 years about the “Death Tax”. These headlines make it seem pretty serious, but in reality…estate taxes impact less than 1% of the population.

Here is what you need to know:

In 2023, estate taxes are only applied to an individual with a gross taxable estate exceeding $12.92 million. This number indexes each year with inflation. In 2026, this historically high Estate Tax exemption limit “sunsets”. If Congress does nothing, the exemption will automatically cut in half at the beginning of 2026. Current estimates are around $7M.

So, you are probably in the clear if your estate doesn’t exceed $7M.

If your estate exceeds $7M, two things:

  1. There are some simple estate planning techniques we can apply to mitigate and, in most cases, eliminate this tax, thus potentially passing more to your heirs.
  2. You should take action this year or early next year. Why?

There is a great deal of uncertainty surrounding the 2024 presidential and congressional cycle.

  • If the Democrats retain control of the Executive and gain control of the Legislative branches, the exemption would more than likely change.
  • If the Legislative branch is split, expect the exemption levels to sunset and drop by ½.
  • If the Republicans gain control of the Executive and Legislative Branches—perhaps the high limits will continue…but it will take an act of Congress.

Estate Planning professionals will be very busy under the first two scenarios in 2025.

In other words, take advantage now while you have a chance. As always, please reach out if you have any questions.


Rock House Financial (RH Advisors) throughout this website has provided links to various other websites. While the firm believes this information to be reasonably reliable, current and valuable to its clients, The firm provides these links on a strictly informational basis only and cannot be held liable for the accuracy, time sensitive nature, or viability of any information shown on these sites.

The opinions expressed herein are those of the firm and are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Any opinions, projections, or forward-looking statements expressed herein are solely those of author, may differ from the views or opinions expressed by other areas of the firm, and are only for general informational purposes as of the date indicated.