Lindabury, McCormick, Estabrook & Cooper, P.C. Firm News & Events
As a result of the 2025 tax legislation passed in July of last year, there has been a significant increase in the estate, gift, and generation-skipping transfer tax exemptions to $15 million effective January 1.
The increase means that in 2026, an individual may make gifts during life or at death totaling $15 million without incurring gift or estate tax, and a married couple will be able to transfer $30 million of assets free of transfer taxes.
The annual gift tax exclusion provided by Code section 2503 remains at $19,000 per donee (or $38,000 if spouses elect gift-splitting).
The gift tax annual exclusion for gifts to non-citizen spouses as set forth in Code sections 2503 and 2523(i)(2) has increased to $194,000.
The increase in the 2026 exemptions mean that a taxpayer who had fully used his or her Basic Exclusion Amount (“BEA”) to shelter lifetime gifts will be able to give an additional amount this year free from transfer taxes.
Those who have made large gifts to irrevocable trusts or outright to descendants should consider additional gifts in 2026 to take advantage of the increases in the BEA and the generation-skipping transfer tax exemptions. We recommend consulting your estate planning attorney about strategies that will secure the benefit of the larger estate, gift and generation-skipping transfer tax exemptions.