Rolf Bruderer | Tetra images | Getty Images The greatest wealth transfer in history is underway, and taxes may take a bite from inheritances without proper estate planning, financial

advisors say. It's estimated that nearly 45 million U.S. households will transfer more than $68 trillion over the next 25 years, according to Cerulli Associates. Baby boomers hold the

bulk of the wealth, thanks to a decade of stock market and real estate growth. Estate planning is critical because important changes have occurred, said certified financial planner Michelle

Gessner, founder of Gessner Wealth Strategies in Houston. MORE FROM PERSONAL FINANCE: Inheriting an individual retirement account? Here's how to avoid a tax bomb Those 529 college

provisions will sunset after 2025. President Joe Biden, meanwhile, has called for levy hikes on the wealthy, including raising the top tax rate, bumping levies on capital gains and taxing

inherited property at death.  Although the future of Biden's agenda is unclear, financial experts plan on higher rates through new legislation or 2017 act expirations. "It really

makes 2021 potentially a very consequential year for decisions," said Larry Harris, CFP and director of tax services at Parsec Financial in Asheville, North Carolina. ROTH IRA

CONVERSIONS Another recent change may surprise some individual retirement account beneficiaries with a smaller inheritance. The Secure Act of 2019 curbed the so-called stretch IRA, which

allowed non-spouse heirs to "stretch" withdrawals over their lifetime. The new law requires some heirs, such as adult children, to empty inherited IRAs within 10 years and pay

taxes on those distributions. But the withdrawals may thrust them into a higher bracket, with the possibility of a large tax bill. > This is something that needs to be addressed so that 

they can keep > as much money for their families as possible. >  > Michelle Gessner > founder of Gessner Wealth Strategie One workaround, a Roth IRA conversion, changes the

balance from pretax to after-tax money. The owner pays levies at "today's low, bargain-basement" rates, allowing heirs to receive tax-free funds, said Gessner.        

"This is something that needs to be addressed so that they can keep as much money for their families as possible," she said. LIFE INSURANCE TACTICS Those with large IRA balances

may also consider life insurance to transfer wealth, Gessner said. Owners may withdraw money, pay taxes on the funds and use the proceeds for a universal or whole life insurance policy.

Generally, heirs will receive a tax-free benefit worth two to four times what someone pays in, Gessner said. Of course, the cost of life insurance premiums depends on age, gender, location,

health status and more. However, an advisor can gather quotes and run projections to see if and when the investment makes sense. "It is not one size fits all," Gessner added.

GIFTING STRATEGIES Although someone may currently transfer up to $11.7 million without paying federal estate taxes, the exemption returns to pre-2017 Tax Cut and Jobs Act levels after 2025,

dropping by more than one-half. If someone transfers more than the limit, they may owe up to 40% estate taxes on future gifts.   Those affected may start discussing gift strategies with

their estate-planning attorney. They need to consider what they can afford, their heirs' ability to manage money and the tax implications of gifts during life vs. at death, Harris said.

Depending on the size of the estate, families may also leverage 529 college savings plans, trusts and charitable giving to reduce their estate tax bill. However, these tactics require

advanced planning. "You're talking about transferring millions of dollars without any tax, estate tax or gift tax implications," he said. "And that opportunity may well

be gone."