Federal Estate Tax Exemption

Definition

The federal estate tax exemption is the total value of assets an individual can transfer at death without owing federal estate tax. Under the Tax Cuts and Jobs Act of 2017, this exemption was temporarily doubled to approximately $13.61 million per individual in 2024, but is scheduled to revert to roughly $7 million (inflation-adjusted) after December 31, 2025. Married couples can effectively double their combined exemption through proper planning techniques.