Recent discussions with Interaxis co-founder, Adam Blumberg, underscore the imminent changes to estate tax laws in the U.S. Particularly, Blumberg draws attention to the significant alteration set to be implemented in 2025.

Historical Perspective: The Current State

Estate tax, while not always at the forefront of financial planning, plays a significant role for those with substantial assets. The current law, as of mid-2023, provides for an exemption threshold of approximately $12.93 million per individual. This means that for individuals whose assets surpass this limit, any value exceeding this figure is subject to taxation at a rate of 40%[1].

Blumberg uses a candid example: if he were to pass away at present, his assets exceeding $12.93 million would be federally taxed. While this may not be relevant to all, there’s an increasing number of individuals for whom this is applicable, especially within the burgeoning crypto space.

Looking Ahead: 2025 and Beyond

Things take a notable turn from January 1st, 2025. The tax benefit reduces substantially, with the exemption threshold dropping from the current ~$13 million to about $7 million[2]. This change effectively means that more assets will be subject to the 40% estate tax than before. As Blumberg points out, a couple today would be able to collectively pass on $26 million without the estate tax implications; post-2025, this would be restricted to just about $14 million.

Why Act Now?

Given the volatile nature of certain assets, especially in the realm of cryptocurrency, there’s an inherent unpredictability in assessing one’s net worth. The value of assets like crypto can skyrocket in a short time, especially in events like the approval of a Bitcoin ETF. The speed of such changes can mean that one’s assets could shift from being under the exemption threshold to exceeding it in a short period[3].

For individuals who possess assets near the current threshold, especially those in the crypto domain or holding private equities, the time to plan is now. This is further emphasized by the potential for assets to significantly appreciate in the time leading up to 2025.

Strategies for Consideration

  1. Asset Relocation: One option is to move assets out of one’s estate. By leveraging the current threshold, up to $12.93 million can be relocated per individual, potentially saving it from future estate taxation.
  2. Utilizing Lower Valuations: Assets, especially those like crypto tokens which might be undervalued currently due to market conditions or lack of public launch, can be moved out of one’s estate. If these assets appreciate outside of the estate, they won’t be subjected to estate tax[4].

Conclusion and Advisory

As we approach 2025, proactive financial planning is critical. The changes to the estate tax could have significant implications for many, and the repercussions of inaction could be costly. Consulting with financial experts, tax attorneys, and estate planners will be paramount. As Adam Blumberg advises, now is the time for foresight and action.


  1. Internal Revenue Service. “Estate Tax.” IRS, 2023.
  2. Tax Foundation. “Impending Changes to the U.S. Estate Tax.” Tax Foundation, 2023.
  3. CoinDesk. “The Potential Impact of a Bitcoin ETF on Cryptocurrency Valuations.” CoinDesk, 2023.
  4. Deloitte. “Strategies for Asset Relocation Ahead of Estate Tax Changes.” Deloitte, 2023.

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