The IRS, in Revenue Procedure 2024-40, announced a higher estate tax and gift tax exemption for 2025. Notably, the estates of decedents who die during 2025 have a basic exclusion amount of $13,990,000, increased from $13,610,000 for estates of decedents who died in 2024. The exemptions apply to tax-free transfers during life and at death.
However, the estate exemption amount could revert to a lower base threshold if the Tax Cuts and Jobs Act (TCJA) expires in January 2025. In the meantime, the higher exemption will continue to save more estates from federal tax.
If you would like to discuss your family’s estate planning, book a call now with St. Louis Estate Planning Attorney Tony Westbrooks.