If you live in or near Manassas, you may be hearing a lot about estate taxes and the “lifetime exemption.” The topic can sound scary and complex. But you do not need a law degree to understand the basics or to start a smart plan. This guide explains how the rules work in plain English, and how families in Prince William County can use them.
You will also see the key phrase “Estate Planning in Manassas VA: Using the $15M Lifetime Exemption Before It Shrinks” several times. That is on purpose. It is your reminder that time and clear steps matter. The ideas here are for learning. Talk with a qualified attorney and tax pro before you act.
The big picture: what the “lifetime exemption” means
The federal government may tax very large gifts made during life or at death. To protect most families, the law gives every person a “lifetime exemption.” You can give away up to that amount, during life or at death, without paying federal estate or gift tax.
For the 2025 tax year, the IRS set the basic exclusion amount at $13,990,000 per person. People often round this to “about $14 million.” Many articles also talk about $15 million as a simple planning target, especially when lawmakers debate changes. The exact number is set by the IRS each year and can change with new laws or inflation.
Here is the good news: the IRS has confirmed that making large gifts now will not hurt you later if the exemption drops in the future. In plain terms, if you use today’s higher amount, the government will not “claw back” those gifts if the rules shrink later.
Because of that rule, many families are asking how to act now. This is why Estate Planning in Manassas VA: Using the $15M Lifetime Exemption Before It Shrinks is more than a slogan. It is a timely plan.
A quick note about Virginia and local probate
Virginia does not have its own estate or inheritance tax. That means most Manassas families only worry about the federal rules. Local probate—the process of handling an estate—runs through the Prince William County Circuit Court Clerk’s Office in Manassas. The Clerk’s Probate Office records wills and qualifies executors and administrators.
Key parts of a simple, strong estate plan
Think of your estate plan as a toolbox. Here are the tools most families use:
- A Will
A will names who gets what and who is in charge (the “executor”). It also lets you name a guardian for minor kids. - Beneficiary forms
For life insurance, retirement accounts, and some bank accounts, a simple beneficiary form can pass assets directly, without probate. Keep these forms up to date. - A Revocable Living Trust
This is a flexible, private way to manage and pass your property. You stay in control while you are alive. The trust helps your family avoid many probate delays when you pass away. - Powers of Attorney and Health Care Papers
If you get sick or cannot act, these papers let a person you trust help with money and medical choices.
These pieces help almost every family, no matter how large the estate is.
How the lifetime exemption works in daily life
There are two main ways you use the lifetime exemption:
- During life (lifetime gifts)
You can make large gifts to people or to trusts. These gifts may use up part of your lifetime exemption. You track them on a federal gift tax return (Form 709). - At death (estate transfer)
Whatever exemption you did not use during life shelters your estate at death.
There is also the annual exclusion for smaller gifts. In 2025, you can give $19,000 per person to as many people as you like. These gifts do not use your lifetime exemption. Many people pair annual gifts with a bigger lifetime plan.
Why people act now: locking in today’s higher amount
You may wonder, “Why rush?” Here’s why:
- The IRS says past gifts made under today’s higher limit will not be penalized if the exemption later drops. So using the larger amount now can lock in tax savings.
- Markets move. If you gift a growing asset today (like a business interest or investment account), all future growth can happen outside your estate.
- Family plans take time. Picking trustees, updating titles, and opening new accounts can take weeks. Starting early avoids last-minute stress.
That is the heart of Estate Planning in Manassas VA: Using the $15M Lifetime Exemption Before It Shrinks. Do not wait until the rules change or the calendar turns.
Plain-English strategies that many Manassas families consider
Here are common, easy-to-grasp ways people use the exemption. These are examples, not advice:
1) Simple lifetime gifts to family
You can gift cash or investments to adult children or to a trust for them. If you give more than the annual exclusion, you will use part of your lifetime exemption. For a large estate, that can lower or even remove future estate tax.
2) A trust that lets your spouse have access (a “spousal access” trust)
A Spousal Lifetime Access Trust (SLAT) is a gift to a trust that names your spouse as a beneficiary. You move assets out of your estate for tax purposes, but your spouse can still request funds for the family if needed. This can feel safer than gifting directly to kids.
3) Gifts for education and medical needs
Paying tuition directly to a school or medical bills directly to a provider does not use your annual or lifetime limit. Many families use this to help grandkids with college or loved ones with care.
4) Review life insurance ownership
If you own a large life insurance policy, the death benefit may be counted in your estate. Some families place policies in a trust (often called an ILIT) so the benefit is outside the taxable estate, yet still supports the family.
5) Pair gifts with your revocable trust and will
Update your will and revocable trust so the rest of your plan still works after the gifts. Check that beneficiary forms align with your plan.
These steps fit the theme of Estate Planning in Manassas, VA: Using the $15M Lifetime Exemption Before It Shrinks while keeping control and care for your loved ones.
Don’t forget “portability” between spouses
If a spouse dies and does not use all of their exemption, the survivor can often keep the unused amount. This is called portability. To get it, the estate must file an estate tax return (Form 706), even if no tax is due. The IRS now allows many smaller estates up to five years from the date of death to make this election under a simplified relief rule. Portability can be a powerful backup to lifetime gifts.
Portability plus smart gifting is a strong combo for Estate Planning in Manassas VA: Using the $15M Lifetime Exemption Before It Shrinks.
A Manassas-specific checklist you can start this week
Step 1: List what you own and how it is titled.
Include bank accounts, retirement plans, insurance, a home, any rental property, and any business interests.
Step 2: Update your will and powers.
Name people you trust. Pick backups. Keep copies in a safe but reachable place.
Step 3: Check all beneficiary forms.
Make sure they match your will and trust. Many surprises happen here.
Step 4: Decide what, if anything, to gift now.
Talk with your spouse and your advisor about which assets make sense to gift. Start with assets likely to grow.
Step 5: Choose the right trust, if needed.
For many couples, a simple SLAT or an irrevocable life insurance trust is enough. Keep it simple.
Step 6: Document and file.
If your gift is above the annual exclusion, remember the gift tax return. If a spouse has died, ask your attorney about the portability election deadline.
Step 7: Know where to go if probate is needed.
In Prince William County, probate and qualification are handled by the Circuit Court Clerk’s Probate Office in Manassas.
Common mistakes to avoid
- Waiting too long. If you hope to use a large exemption, planning at the end of the year can be stressful. Banks and custodians get busy.
- Forgetting state rules. Virginia has no state estate or inheritance tax, but that does not mean no taxes ever. Your estate may still owe federal estate tax if it is large enough.
- Not filing for portability. Surviving spouses may lose a valuable benefit if they skip the Form 706 filing within the allowed window.
- Ignoring beneficiary forms. The wrong name on a form can undo a great plan.
- Mixing goals. Large gifts should match your family’s needs. Keep enough for your own retirement and care.
What about the “shrink” everyone talks about?
Many people worry that the higher exemption will drop in the future. The IRS has already said past gifts under today’s rules will not be clawed back if the amount later falls. So, for many families, using part of the exemption now is a “use it or lose it” chance.
You may also see news stories about bills that would change the exemption again. Laws can change, sometimes up, sometimes down. That is another reason to build a flexible plan and review it each year. (For current federal numbers in 2025, see the IRS update noted earlier.)
Simple examples (numbers rounded to keep things clear)
- Maria and Luis (Manassas couple).
They own a home, a rental condo, and investments. In 2025, they each give $19,000 to each of their two children and two grandchildren (that’s eight gifts total), and they also move a $2 million investment account into a spouse-access trust. They file a gift tax return to report the $2 million gift, which uses part of one spouse’s lifetime exemption. Later growth on that account happens outside the taxable estate. - Ava (widow).
Her husband died in 2023. The estate filed a timely portability return so Ava can use his unused exemption plus her own. In 2025 she gifts a share of her business to a trust for her kids, keeping enough income for herself. She has locked in today’s higher amount and, thanks to the IRS “anti-clawback” rule, her gift stays protected even if the limit later falls.
These examples show how Estate Planning in Manassas VA: Using the $15M Lifetime Exemption Before It Shrinks can play out in real life, even with simple choices.
FAQs in a hurry
Q: Do I really need a trust?
A: Not always. But a revocable trust can make things smoother for your family and help avoid many probate delays.
Q: We are far below $14–$15 million. Should we still plan?
A: Yes. Good planning is not only about taxes. It is about making life easier for loved ones.
Q: Does Virginia tax inheritances?
A: No state estate or inheritance tax in Virginia, but federal rules still apply if your estate is large.
Q: What if we miss the portability filing?
A: The IRS now allows many smaller estates a five-year window to ask for late relief. Do not rely on that if you can file on time, but it may help.
Final word
You do not control the markets or Congress, but you do control your actions. Make a clear list, update your will and trust, and consider what to gift now. Work with a local attorney who knows Prince William County procedures, and a tax pro who can file the right forms.
If you remember just one phrase, let it be this: Estate Planning in Manassas, VA: Using the $15M Lifetime Exemption Before It Shrinks. Start early, keep it simple, and review each year. Your future self and your family will thank you.
