The Lifetime Estate and Gift Tax Exemption—also called the Unified Credit, Lifetime Exemption, or Basic Exclusion Amount—is the total amount an individual may transfer during life or at death without paying federal estate or gift tax. The exemption is unified, meaning lifetime taxable gifts reduce the amount available at death.*
For 2025, the exemption is $13.99 million per individual (or $27.98 million for married couples). Beginning in 2026, the exemption permanently rises to $15 million per person (or $30 million for couples) with future adjustments for inflation. Transfers above these thresholds are taxed at the applicable estate or gift tax rate.
This exemption is a cornerstone of estate planning, allowing families to transfer wealth efficiently and minimize future tax exposure.
*A spouse may transfer an unlimited amount to the other spouse during life or at death without gift or estate tax consequences. (Unlimited Marital Deduction)
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