Following the enactment of the Tax Cuts and Jobs Act in 2017, the federal estate and gift tax exemption was increased from $5.49 million per person to $11.18 million, which allowed for a substantial increase in what taxpayers were allowed to transfer both during their lifetime and posthumously, without triggering federal estate or gift taxes. Currently at $13.61 million for individuals or over $27 million for couples with inflation adjustments, this expansion was particularly beneficial for those with sizable estates. However, this provision is set to expire on December 31, 2025, reverting back to 2017 levels unless Congress intervenes.
Starting January 1, 2026, the exemption is poised to decrease by half to $6.81 million ($13.6 million for couples), potentially subjecting estates above this threshold to a 40% estate tax rate on the surplus.
For more see: https://www.jdsupra.com/legalnews/looming-changes-to-federal-estate-gift-1785860/
Arthur H. Geffen
Attorney & Counselor at Law
17330 Preston Rd., Suite 200D-260
Dallas. TX 75252
469-442-2640
214-447–0241 FAX
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