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Thanks to a temporary expansion in the gift and estate tax exemption, individuals can give away up to $13.61 million tax-free. For married couples, that jumps to $27.22 million.
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But this window won’t stay open much longer. If Congress doesn’t act, the limit drops by half at the end of 2025, giving you about seven months to take advantage before the IRS takes a much bigger bite out of your nest egg.
Why this matters
Starting in 2026, the exemption is currently scheduled to fall to around $6 million to $7 million per person. That means millions of dollars in assets could suddenly be subject to a 40% estate tax.
Some context:
The current high exemption is a product of the 2017 Tax Cuts and Jobs Act.
It was always scheduled to sunset on Dec. 31, 2025.
The IRS has already confirmed: gifts made before the sunset are locked in. No clawbacks.
Translation: You can give now, and it won’t count against you later — even if the exemption shrinks. With our partner, SmartAsset, you can get matched with up to three fiduciary advisors so you can get professional advice.
What you can do in 2025
Use your lifetime exemption
If you’ve been waiting to transfer cash, now is the time. You can gift cash, stocks, property, or business equity — up to the current limit — without triggering the federal gift tax.
Prioritize appreciating assets
Assets that are likely to grow — like real estate, private company shares, or investments — create the biggest tax benefit when gifted early.
Consider strategic trusts
Tools like SLATs, GRATs, and IDGTs let you transfer wealth while maintaining some control or income. These are powerful vehicles, especially for high-net-worth families with complex assets.
Max out your annual exclusion
You can also give $18,000 per person (or $36,000 per couple) to as many people as you want each year, without touching your lifetime limit. It’s a simple way to pass wealth gradually and avoid gift tax altogether.
If you’re not sure which strategy fits your situation, SmartAsset can match you with a vetted estate planner in minutes.
Don’t count on Congress
No one knows for sure if lawmakers will extend the current exemption, especially in a divided political climate.
And if they let the 2025 deadline pass, the exemption reverts to pre-2017 levels. For families with sizable estates, that could mean millions more going to taxes instead of loved ones.
That’s why more wealthy families are making their moves now, while the rules still favor them.
If you need help understanding your estate tax exposure, our partner SmartAsset’s no-cost quiz makes it easier to find a fiduciary financial advisor.
What are you waiting for?
2025 is shaping up to be a critical year for high-net-worth estate planning.
If you’ve been waiting to act, don’t wait much longer.
The tax code is currently set to change.
There’s no do-over if you miss the deadline.
With the right moves, you can preserve more of your wealth and pass it on exactly how you want to.
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