The outcome of this week’s U.S. presidential election could determine the fate of major changes to the way wealthy Americans are able to pass money to their heirs.

THE Tax Cuts and Jobs Act (TCJA) of 2017 – a federal law that increased the exemption from inheritance tax…will expire at the end of next year. If that happens, the exemption limit could be cut in half depending on the new administration and how divided Congress is.

Although it is uncertain what will happen to the TCJA and the estate tax exemption next year, experts recommend working with a estate planning lawyer and financial advisor now to see if giving money this year or next year is a good option.

Why Choice Matters for Estate Tax Exemption Limits

Currently, individuals can gift up to $13.61 million to their heirs without having to pay federal taxes.This exemption ceiling will rise to nearly $14 million in 2025. Any amount exceeding these limits could be taxed at a rate of up to 40%. If the TCJA expires, this limit would return to its inflation-adjusted pre-2017 level of approximately $7 million.

“Most households are nowhere near this amount ($13.61 million cap) in terms of what they will be left with at the end of their lives, but wealthier households should get tax advice on how to do it,” said Christine Benz, a tax advisor. director of personal finance and retirement planning for Morningstar.

The TCJA was signed into law during the previous term of former President and Republican candidate Donald Trump. Trump’s campaign platform states that “Republicans will make the Trump Tax Cuts and Jobs Act provisions permanent,” and that includes the estate tax exemption limits.

Vice President and Democratic Party nominee Kamala Harris’ platform also does not specifically mention inheritance taxes, but takes a different view on tax breaks for wealthy Americans. This “includes rolling back the Trump tax cuts for the richest Americans, adopting a minimum tax on billionaires, quadrupling the tax on stock buybacks and other reforms aimed at to ensure that the very rich respect the same rules as the middle class.

And that uncertainty, advisers say, should prompt those who might be affected to seek advice now.

“Even if you’re in the $5 million or $6 million range, you could face an estate tax issue in the future,” said Dennis Huergo, vice president of Wealth Enhancement Group.

Strategies to Use Now to Reduce Taxable Estate

Even if the law changes and tax exclusion limits are lowered, Americans could still benefit from the old limits if the wealth transfer is executed in a certain way and at the right time.

“They (the IRS) are essentially giving customers the green light to make larger donations, now knowing that the exemption could fall in the next few years and giving them assurance that they (customers) will not be harmed or penalized for these transactions,” Hugo said.

Experts note that there are ways people can reduce their taxable estate while still leaving money to their heirs, such as with exclusion of gift taxwhich allows individuals to transfer, in 2024, up to $18,000 per person, to any number of people. This annual gift tax exemption does not affect the amount of your lifetime exclusion.

People can also take advantage of exclusions for tuition and medical expenses, Brady suggests. With these exclusions, individuals or couples can pay tuition and medical expenses directly to educational institutions or insurers for dependents, children or grandchildren.

“These (exclusions) do not count toward the (inheritance tax) exemption…It also does not count as using your annual gift exclusion,” said Kevin Brady, vice president at Wealthspire Advisors .

And for those who want to help a friend or family member meet their education expenses in the future while reducing their own taxable estate, you can also try donating a Plan 529 to a beneficiary, according to Cameron Valadez, partner and CFP, at Planable Wealth.

Huergo also advises some of his clients, who are close to reaching the estate tax limits, on how to use estate freeze techniques to reduce their taxable assets. This involves “freezing” the value of an appreciating asset and later transferring the tax liability to a beneficiary.

“In this situation, we would use a sort of estate freeze technique where we would place the high-growth assets outside of the estate,” Huergo said. “You would still have access to the capital you need to ensure you have a fulfilling life during your lifetime.”