New Tax Limits for 2025
In 2025, people making estate plans should know about changes to estate and gift tax laws. In 2025, there will be new estate tax exemptions and gift tax exclusions, so understanding the basics will help when meeting with an attorney to create your estate plan.
What You Need to Know
The biggest changes in 2025 involve gift tax exclusions and the federal estate tax exemption.
In 2025, the gift tax exclusion is going to increase from $18,000 per individual to $19,000 per individual. This means you can give up to $19,000 to each person without paying any tax. If married, this amount is doubled from $19,000 to $38,000. This can be done every year, depending on changes in gift tax laws.
The federal estate tax exemption will also be raised in 2025. It will be increased from $13,610,000 to $13,990,000, a difference of $380,000. This means that for decedents who pass away in the year 2025, you will be able to pass on a nearly 14 million dollar estate without any kind of federal estate tax. However, keep in mind that while this is the federal rule, many states have different exemptions. Be sure to consult an estate planning attorney in your state for more details.
[Related Reading: How Does The “Death Tax” Work?]
How to Prepare
As you create your estate plan, watch for changes with the new political administration. Estate tax exemptions and gift tax exclusions will change in 2026, so make sure your plan reflects your wishes.
If you have questions about the new estate tax exemptions or gift tax exclusions, or want to learn how to give more without triggering the gift tax, contact us at Relational Estate & Elder Law.
Disclaimer: The information you obtain in this post is not, nor is intended to be, legal advice. This blog shares general best practices when navigating Virginia or West Virginia law, but you should consult an attorney for advice regarding your individual situation.