The Tax Cuts and Jobs Act temporarily doubled the gift and estate tax exemption from $5 million to $10 million (adjusted annually for inflation) for gifts made or estates of decedents dying after Dec. 31, 2017, and before Jan. 1, 2026. However, after 2025, the exemption is scheduled to drop back to pre-2018 levels. To address concerns that the estate tax of decedents dying, and gifts made, during that period could apply to gifts exempt from gift tax by the increased exemption amount, new IRS regs allow an estate to compute its estate tax credit using the higher exemption amount applicable to gifts made during life or the amount applicable on the date of death. Contact us for further details.