Planning for the future is one of the best ways to protect your family and make sure your legacy is safe. But with shifting laws and an uncertain political landscape, figuring out your next steps can feel like a lot. Right now, one of the biggest questions on the horizon is what happens to the Tax Cuts and Jobs Act (TCJA), which is scheduled to end at the close of this year.
However, the recent election has added another layer of complexity. The TCJA’s expiration has been looming since it was passed in 2017, but with the Republican re-election, there’s speculation about whether these tax rules might be extended. At this point, it’s uncertain whether Congress will act to preserve the current exemptions or allow them to sunset as planned. With so much up in the air, now is the time to focus on your estate plans and make sure you’re prepared for whatever changes 2026 may bring.
What is the TCJA?
The TCJA, passed back in 2017, brought big tax changes, including major impacts on estate and gift taxes. One of the standout features was a huge increase in the federal estate and gift tax exemption. Currently, under the TCJA, individuals can transfer up to $12.92 million tax-free (based on current 2025 limits), and couples double that amount up to $25.84 million.
However, these changes weren’t permanent. Unless new legislation is passed, the TCJA’s provisions affecting estate and gift taxes will revert to pre-2018 levels after 2025. This means the exemption will drop to around $6 million per person, adjusted for inflation. While this sunsetting is still on the books, it’s worth noting that political developments could change things. If Congress steps in, the higher exemption levels might stick around longer, or perhaps face reformation.
But nothing’s set in stone, and relying on “what ifs” isn’t the safest approach when it comes to your estate.
What Could Change If the TCJA Sunsets?
The most immediate impact of the end of the TCJA is the reduced federal estate and gift tax exemption. For families who have taken advantage of the current higher exemption, this change could lead to unexpected tax liabilities. Here’s what you should know about the potential changes:
TCJA Changes for Estates
- More People Could Face Estate Taxes: A lower exemption means more estates would fall under federal tax requirements. If the value of your estate exceeds the new limits, your heirs might have to deal with taxes that could cut into their inheritance.
- Fewer Opportunities for Tax-Free Gifts: Right now, you can pass along assets to family and loved ones using the larger exemption. If the limits shrink (to around $6 million per person), it could make giving away assets less efficient and more costly.
- Revised State Tax Considerations: While North Carolina doesn’t currently impose its own estate tax (one of the many benefits of living in the Tar Heel State), not every state operates the same way. A reduced federal exemption might affect how some state taxes apply to your assets, especially if you own property in other states.
TCJA Changes for Businesses
- Impact on Small Business Owners: Family-owned businesses and farms may be particularly affected. The new exemption may reduce the amount that can be shielded from taxes, increasing the financial burden on heirs who want to keep the family business running.
- Loss of QBI Deduction for Pass-Through Businesses: Pass-through businesses—like sole proprietorships, partnerships, and S-corporations—will no longer be able to deduct up to 20% of qualified business income (QBI) when calculating taxes.
- Reversion of Business Interest Deduction Rules: The business interest deduction will return to pre-TCJA rules. This means businesses can generally deduct interest expenses in the year they’re paid or accrued, but with prior limitations back in place.
Why Take Action Now?
While we can’t predict the future of the TCJA with certainty, waiting may limit your ability to take advantage of the current laws. Acting now lets you plan ahead and make the most of the current high exemption amounts. Here’s what you can do today:
- Review Your Current Estate Plan: Dust off your will and trust documents and review them with a qualified attorney. Make sure they still reflect your goals and account for any changes in your family, finances, or intentions.
- Consider Lifetime Gifting: If you’re planning to transfer assets to family members, doing it now may be your best shot at taking advantage of the higher exemption. Gifting today could prevent larger tax bills tomorrow.
- Establish or Update Trusts: Trusts are incredibly valuable tools for estate planning. Options like irrevocable trusts or generation-skipping trusts can help protect your assets and minimize your tax liability. An estate planning attorney can help guide you through the best options for your situation.
- Evaluate Your Business Succession Plan: If you own a family business here in Charlotte, now’s the time to lean into succession planning. Setting up a clear transition strategy could reduce tax burdens and protect your family’s efforts going forward.
- Get Advice From Professionals: Bringing in experienced legal and financial advisors is your best defense against uncertainty. A knowledgeable team can give you strategies designed for North Carolina’s laws and the current federal landscape.
How Dozier Miller Can Help
We understand that estate planning is about much more than paperwork and taxes—it’s about protecting the people and the values you hold dear. At Dozier Miller Law Group, we’re committed to helping you prepare for the future with confidence, and we’ll walk you through each step. We take pride in simplifying complex legal changes into simple, manageable steps that make sense for you.
Whether you need to review your will, set up a trust, or explore how lifetime gifting could benefit your family, we’re here to guide you every step of the way. Don’t leave your estate plan to chance—partner with a team that cares about your goals and is ready to tailor a plan to meet your needs.
Take the First Step Today
With uncertainty around the TCJA and its possible end, this is the perfect time to take charge of your estate plan. Don’t wait until the laws change to start planning—ensure your family’s future is secure today.
Reach out to Dozier Miller Law Group today to schedule a consultation. Together, we’ll create a plan that protects your legacy and ensures the people you love are taken care of.

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