Estate and Gift Tax Essentials: Preparing for 2025 and Beyond

As we look to 2025, Jeff shares Pennsylvania’s updated estate and gift tax numbers. We invite you to attend our free Medicaid workshop to understand how these numbers can affect your Medicaid eligibility. This is also a good time to emphasize the importance of planning for your family’s financial future. Be sure to choose a law firm with experienced and licensed attorneys in estate planning and elder law. Jeff offers tips on how to find professionals that are right for you.

Register for our free workshops: https://bellomoassociates.com/workshops/

WHAT YOU NEED TO KNOW

(00:00) Episode introduction.

(02:43) In 2025, the annual gift tax exclusion amount will be $19,000. The exemption amount will be $13.99 million for an individual or $27.98 million for a couple.

(08:15) To qualify for Medicaid, you must spend down your assets to either $2,400 or $8,000 depending on your income. If your monthly income is greater than $2,901, you can have $2,400 in assets. If your income is less than $2,901, you can have $8,000 in assets.

(09:38) The monthly personal needs allowance will be $60.00.

(10:03) For a married couple, the community spouse can keep 50% of the couple’s total assets—but no less than $31,584 and no more than $157,920.

(11:21) The community spouse will be allowed a minimum monthly income of $2,555. If the community spouse’s income is less than this amount, they may keep a portion of their spouse’s income to reach the minimum. The maximum allowable monthly amount will be $3,948.

(11:57) Gifting money during the Medicaid five-year lookback period can cause a delay in Medicaid eligibility. The 2025 penalty divisor will be 399.80.

(13:37) The minimum home equity exemption will be $730,000. The maximum will be $1,000,097.

(14:10) The home maintenance deduction will be $989.10. The heating standard will be $750 or $401 for non-heating. The excess monthly allowance will be $767. The Medicare Part B premium will be $185.

(15:15) Some current tax rules are expected to sunset at the end of 2025.

(19:28) Beware of recent trends in estate planning. Choose only experienced and licensed estate planning and elder law attorneys to help you develop a plan that protects your family’s financial future.

ABOUT BELLOMO & ASSOCIATES

Jeffrey R. Bellomo, the founder of Bellomo & Associates, is a licensed and certified elder law attorney with a master’s degree in taxation and a certificate in estate planning. He explains complex legal and financial topics in easy-to-understand language.

Bellomo & Associates is committed to providing education so that what happened to the Bellomo family doesn’t happen to your family. We conduct free workshops on estate planning, crisis planning, Medicaid planning, special needs planning, probate administration, and trust administration. Visit our website (https://bellomoassociates.com/) to learn more.

Bellomo & Associates workshops: https://bellomoassociates.com/workshops/

Call us at (717) 845-5390

Tune in Saturdays at 7:30 a.m. Eastern to WSBA radio: https://www.newstalkwsba.com/

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