IRS confirms large gifts now won’t hurt post-2025 estates - Crawford Ellenbogen

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.