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The federal estate tax exemption is the maximum value of assets an individual can leave to their heirs upon death without incurring federal estate tax. The exemption effectively sets a threshold below which estates are not subject to federal estate tax.
The federal lifetime estate and gift tax exemption for people who die in 2024 is $13,610,000, and the highest estate tax rate is 40%. However, after 2025, the $13,610,000 figure will be much...
Under current legislation, the lifetime gift and estate tax exemption amount is poised for a substantial reduction in 2026. The potential decrease prompts urgency among those planning the transfer of sizable estates and taxable gifts.
For clients who have not made any gifts prior to 2026, their lifetime gift and estate tax exemption will revert to 2026 levels, with any increases in subsequent years applying.
Unless Congress acts, on Jan. 1, 2026, the estate, gift and generation-skipping transfer (GST) tax exemption amounts will be cut in half. A decrease in the exemption amount could result...
For example, the estate and gift tax exemption are set to be reduced to about $6,000,000 on January 1, 2026. Under Harris’ proposal, it would be reduced to $3,500,000 upon proposal of the Act. The key provisions Harris wants to enact are the following: Lower the estate and gift tax exemption to $3,500,000 (the 2009 level).
The TCJA provides for an estate and gift tax lifetime exemption of $13.61 million for individuals in 2024 ($13.99 million in 2025), which means you can gift up to this amount — above which any ...
The lifetime gift/estate tax exemption is $13.61 million in 2024 and 2025. The lifetime gift/estate tax exemption is projected to be $7 million in 2026. Note: 2025 exemption does not reflect a possible inflation adjustment; 2026 exemption is projected.
As of January 1, 2026, the current lifetime estate and gift tax exemption will be cut in half, and adjusted for inflation. Families that may face estate tax liability in 2026 may benefit from transferring assets and their appreciation out of their estate sooner rather than later.
A uses $9 million of the available BEA to reduce the gift tax to zero. A dies in 2026. Even if the BEA is lower that year, A’s estate can still base its estate tax calculation on the higher $9 million of BEA that was used in 2018. For more information about this and other TCJA provisions, visit IRS.gov/taxreform.