Estate Tax Exemption On Track To Decrease In 2026 – Estate Planning
Please choose any of the following articles below that interest you. Each article is listed under the month it was written. Articles written in prior months may still have educational interest.
Estate tax exemptions began with the Revenue Act of 1916, which imposed a transfer of wealth tax on the estate of any deceased U.S. citizen valued above a certain amount at the time of death. In 1916, the exemption amount was $50,000, today that amount is $12.92 million. Over the decades, however, the exemption amount has varied, driven primarily by lawmakers and inflation indices. In 1977, the exemption amount was $120,667, then gradually increased over the years to $5.49 million in 2017. The current exemption is expected to revert to $5 million on January 1, 2026, yet may be higher depending on where inflation is at that time. Some estimate the revised exemption amount to reach between $6 to $7 million after adjusting for inflation.
Sources: IRS; https://www.irs.gov/businesses/small-businesses-self-employed/estate-tax
Print Version: Estate Tax Redemption Nov 2023
