Exemptions and Exclusions for 2025

Starting January 1, 2025, the exemptions and exclusions have increased. This may impact your planning - both for gift giving this year, and for estate planning in the future.

Federal Estate and Gift Tax Exemption

The federal estate and gift tax exemption has increased to $13.99 million per person ($13.61 million in 2024). For married couples, this is doubled, and is a total oy $27.98 million. This means that you have to have MORE than that to pay an estate tax when you die OR that you can transfer this amount to another person without paying an estate tax either during your lifetime or after you die.

In 2026, if Congress does not act, then this amount will drop to about $6-7 million per person. We will continue to monitor these Congressional actions.

Annual Gift Tax Exclusion

Every year you can give a certain amount of money without reporting to the IRS — and without it impact your federal estate tax. This year, you can gift up to $19,000 per recipient without impacting your lifetime exemption. For married couples, this doubles to $38,000 per recipient.

If you have questions about this and how this impacts your estate plan, contact us!