Estate and Gift Tax Limits for 2025 and Firm News
2025 Estate and Gift Tax Limits Will Be Highest Yet
The annual estate and gift tax exemption amount in 2025 is $13.99 million per individual, reflecting an inflation increase from the 2024 exemption amount of $13.61 million. As a result, a married couple can now pass on up to $27.98 million, either during their lifetime or at death, without incurring gift or estate tax. For an individual who already reached their lifetime gift limit in 2024, they can now gift an additional $380,000 in 2025, or a married couple can gift another $760,000. This estate tax exemption is in addition to the annual gift tax exclusion, which allows individuals to pass along additional gifts each year without triggering additional gift taxes, as described below.
Absent any legislative action on estate taxes, the current laws will sunset at the end of 2025 and the estate and gift tax exemption amount will be significantly reduced as it reverts back to $5 million indexed for inflation. This inflation adjusted amount is currently estimated to be between $6 and $7 million.
The annual gift tax exclusion amount is also increasing in 2025 to $19,000 per year, representing an increase from the 2024 amount of $18,000. This means that a married couple can now gift up to $38,000 per recipient in 2025 without incurring gift tax, thereby removing the assets from the donor’s taxable estate and allowing the assets to appreciate in the recipient’s name.
Please contact us if you wish to schedule a consultation to discuss the impact of any of these changes on your estate plan.
Cappelloni Law PC News
Attorney Lauren Cappelloni returned to the office in September following a sabbatical to mark 18 years of law practice. She appreciated the ability to take her kids out of school and enjoy a once in a lifetime opportunity to travel abroad together for four months. Her favorite cities were Barcelona and Edinburgh. Though she enjoyed her adventure, she feels fortunate to return to a job that she loves.
Attorney Karly Schlinkert is starting her eleventh year as a trust and estates attorney, and Cappelloni Law is fortunate that she is starting her third year with the firm. Karly had a great year taking an epic RV trip through Alaska, welcoming a new niece and nephew to the Schlinkert family, and learning new (and shockingly complicated) board games. While this year was full of excitement, she is thankful to be able to relax with her English bulldog, Mr. Buttons.
Cappelloni Law PC appreciates your contribution to our firm’s success as we enter our seventh year, and we look forward to many more years of partnership.
Wishing you a happy holiday season and all the best in 2025!