The federal estate tax exemption is scheduled to be cut nearly in half at the end of 2025 — affecting millions of households that were previously below the threshold.
The Tax Cuts and Jobs Act doubled the federal estate tax exemption in 2018. Without congressional action, it reverts to approximately $7M per person (inflation-adjusted) at the end of 2025. For households in the $7M–$27M range, this creates urgency around gifting, trust strategies, and estate freezes before the window closes.
What changes at the $2M–$30M level
Your action plan
Ordered by urgency. Items marked "Immediate" should be addressed within 2–4 weeks.
Model your estate tax liability assuming a ~$7M per person exemption. This is the most important planning number to know right now.
Do this in My Wealth Maps →You can use your current higher exemption for gifts now. The IRS has confirmed that gifts made under the higher exemption will not be clawed back.
Do this in My Wealth Maps →SLATs, GRATs, and IDGTs funded at the higher exemption level lock in the current rules for those assets.
Do this in My Wealth Maps →If a spouse has died without a portability election, there may still be time to file. If both spouses are living, confirm your portability plan.
Find an estate attorney →Your estate plan may have been written assuming a higher exemption. Review whether trust structures and distributions still work under the new numbers.
Find an estate attorney →How prepared are you for estate tax law change?
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An estate attorney can execute the legal documents and trust strategies this event requires.
Browse attorneys →A fiduciary advisor can model the financial impact and coordinate strategy across your full picture.
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