From the US House of Representative’s passage of a new tax bill to the Centers for Medicare & Medicaid’s issuance of new spousal impoverishment standards and the Department of Labor’s decision not to apply its 2024 final rule on worker classification, we have recently seen significant developments in estate planning, elder and special needs law, and business law.

To ensure that you stay informed of these legal changes, we have highlighted some noteworthy developments and analyzed how they may impact your estate planning, elder law, and business law practice.

Written by Griffin Bridgers, JD, LLM

Gift tax can be a complex subject, even for advanced practitioners. Confusion often reigns supreme when balancing reporting obligations on Form 709, using lifetime gift tax exemptions and annual exclusions, and determining gift tax values. 

The gift tax annual exclusion allows a donor to give up to $19,000 per recipient in 2025. This exclusion can be doubled for married couples through joint gifts or the gift-splitting election. Yet, this annual exclusion does not apply to all gifts. Per Internal Revenue Code (I.R.C.) § 2503(b), this annual exclusion is not available for gifts of “future interests.” Future interests are contrasted with “present interests” in Treas. Reg. § 25.2503-3(b), under which present interests are defined as any “unrestricted right to the immediate use, possession, or enjoyment of property or the income from property.” This requirement of immediate possession or enjoyment is a central focus of this article, as it is a prerequisite to creating a present interest that qualifies for the gift tax annual exclusion.

From a taxpayer win involving an intrafamily transfer to the vacating of a Centers for Medicare and Medicaid (CMS) final rule and a prohibition on contractual limitations of damages for intentional torts, we have recently seen significant developments in estate planning, elder and special needs law, and business law.

To ensure that you stay informed of these legal changes, we have highlighted some noteworthy developments and analyzed how they may impact your practice.