2025 Federal Estate and Gift Taxes

At Weiss, Tom & Trapanese, LLC, we assist our clients in many areas of elder law. Taxes are a consideration for most people engaging in estate planning. The Internal Revenue Service has recently announced the 2025 figures for Federal Estate and Gift Tax Exclusions.

Gift Tax Exclusion for 2025

The gift tax exclusion for 2025 will be $19,000 per recipient per year. This is a $1,000 increase from the 2024 figure of $18,000. This is doubled for married persons. In other words, $38,000 per recipient per year may be gifted tax-free.

Federal Estate Tax Exemption for 2025

In 2024, the Federal Estate Tax Exemption for an individual is $13.61 million and for a couple the number is double. In 2025, that number will increase to $13.99 million for an individual taxpayer. Married couples can shelter up to $27.98 million in 2025. These numbers also apply to gifts made in excess of the annual gift exclusion.

Individuals and couples must, as part of their estate plan, be cognizant of the fact that the current tax legislation is set to expire, or "sunset," for these higher gift and estate tax exemption amounts on January 1, 2026. If Congress does not act before this date, the exemptions will revert to where they were in 2017, adjusted for inflation. The amount in 2017 was $5,490,000 for an individual taxpayer.

The attorneys at Weiss, Tom & Trapanese, LLC, can assist you with formulating an estate plan for your specific needs.