Wealthy families regret rushing to give gifts after tax law changed

Key Points:

• Many wealthy families rushed to give away assets before the 2025 expiration of the Tax Cuts and Jobs Act (TCJA) gift tax exemptions, only to find out the exemptions were made permanent by a new law signed in July 2025, causing some regret over the timing of their gifts.
• The TCJA had doubled the lifetime gift exemption to nearly $14 million per person, but it was set to revert to about $7 million in 2026, prompting accelerated gifting to avoid higher estate taxes.
• Some families are now exploring legal options such as "decanting" trusts or relocating them to different states to regain flexibility or modify irrevocable trusts, though these processes can be complex, costly, and may not fully undo the original gifts.
• Financial advisers caution that while it is possible to adjust previous estate plans, the efforts may be challenging and expensive, and the trusts will likely remain in some form, so families should weigh the benefits against the costs.
• Despite some second thoughts, experts generally agree that accelerated gifting was a prudent move at the time and that many families would have eventually transferred assets anyway, so regrets may be unwarranted.