The estate tax exclusion is the amount you can give without facing an estate tax. Under current law, you may give this amount during life or at your death and after that amount is used, you face a federal tax of 40% on assets beyond that amount. The amount has fluctuated a great deal over the years. It was $675,000 as recently as 2001. In 2021, the exclusion is a whopping $11.7 million per person. This exclusion consists of a “permanent” exclusion of $5 million, adjusted for inflation since a 2011 base year, and then temporaril doubled through 2025 as a result of a 2017 law. So, unless Congress acts to extend the doubled exclusion, it will revert to $5 million adjusted for inflation beginning in 2026. Confusing, isn’t it?
Biden Administration Could Reduce Estate Tax Exclusion
About Swier Law Firm's Estate Planning & Probate Practice Group
Swier Law Firm has a nationally recognized practice in estate planning and probate law and handles the following types of cases:
- Estate Planning: Wills & Living Trusts
- Legacy Planning
- Family-Owned Businesses & Farms
- Powers of Attorney & Living Wills
- IRA & Retirement Planning
- Asset Protection & Business Planning
- Special Needs Planning
- Trust Administration & Probate
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