07/16/2025
The One Big Beautiful Bill permanently increases the exemption for the estate and gift tax to $15 million, up from $10 million, starting in the 2026 tax year. This exemption is indexed to inflation, which means each individual will have approximately $19 million of exemption in 2026.
The increase in the exemption amount allows individuals to transfer more wealth without incurring estate or gift taxes.
The permanence of the exemption provides a stable framework for long-term estate planning, as individuals can plan with certainty regarding the tax implications of their estate transfers.
This could lead to significant shifts in estate planning strategies, emphasizing the importance of utilizing the increased exemption to minimize tax liabilities and maximize wealth transfer to future generations.
