Estate and gift taxes affect the transfer of wealth. Understanding the exemptions and strategies can preserve your assets for the next generation.

Estate and Gift Tax Basics

Federal Estate Tax

Applied to the transfer of assets at death.

2025 Exemption: $13,990,000 per individual ($27,980,000 per married couple)

Tax Rate: Up to 40% on amounts above the exemption

Note: The TCJA increased exemptions expire after 2025 unless extended by Congress. The exemption could drop to approximately $7 million per person.

Annual Gift Tax Exclusion

Give up to $19,000 per person per year tax-free (2025)
Gifts to spouses are unlimited (if U.S. citizen)
Medical and tuition payments paid directly to providers are excluded

Lifetime Gift Tax Exemption

Same $13,990,000 as the estate tax exemption
Using lifetime gifts reduces the estate tax exemption at death

Estate Planning Strategies

Annual gifting: Use the annual exclusion consistently
Trusts: Irrevocable life insurance trusts (ILITs), GRATs, SLATs
Family Limited Partnerships: Transfer business interests at a discount
Charitable giving: Charitable remainder trusts, donor-advised funds
529 superfunding: Contribute 5 years of gift exclusions at once

Planning your estate? Work with our team to protect your legacy.

Estate and Gift Tax Basics