The current exemption limit is $12.92 million for estates of individuals and $25.84 million for the combined estates of married couples.
About 0.1 to 0.2% of estates of people who died in recent years have been subject to federal tax.
A common strategy is to trim your estate's value before Dec. 31, 2025, and then keep it below the exemption limit, if feasible, or as low as possible to minimize tax exposure.
This would assure substantial resources for their grandkids' educations while reducing the couple's combined estate by $1.7 million.
While getting organized to reduce your estate's value by making gifts, it's a good idea to get updated real estate appraisals.
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