Estate Taxes

With the passage and enactment of the so-called “One Big Beautiful Bill” (OBBBA) on July 4, 2025, the Federal estate tax exemption has been permanently increased to $15 million for single filers and $30 million for married filing joint filers for 2026.  These exemption amounts are also indexed for inflation so they will be increasing each year.  The IRS will be releasing the inflation indexed amounts going forward.

What this means is that only the wealthiest taxpayers are going to be subject to Federal estate tax, and the vast majority of people will not have to file anything on death.

One word of caution is that while there will likely be no Federal estate tax, the States have their own rules so there is a good chance you may be subject to State estate tax.  The rules are quite complex so if you have any doubts, please reach out to us so that we can advise you on your specific situation.