Big Relief on the Horizon: Estate & Gift Tax Exemption Raised to $15 Million Per Person
- Zachary Kamish
- Aug 13
- 2 min read
What’s Changed?
Thanks to the One Big Beautiful Bill Act (OBBBA), passed on July 4, 2025, there's a significant and welcome change in estate and gift tax law: beginning January 1, 2026, the federal lifetime exemption increases to $15 million per person—that’s $30 million for married couples. Best of all, it's permanent and will be adjusted annually for inflation.
This replaces the previously scheduled rollback under the Tax Cuts and Jobs Act, which would have cut the exemption to around $7 million per person starting in 2026.
Why This Matters
Greater Peace of Mind & Flexibility With the exemption permanently raised, individuals with sizable estates now enjoy more breathing room without the urgency to rush complex gifting strategies to beat the 2025 deadline.
More Certainty for Planning Families and business owners can build long-term strategies- trusts, gifts, wealth transfers, without worrying about sudden legislative shifts next year.
What to Do Now
Review Your Estate Plan Even with a higher exemption, proactive planning remains crucial. Updates to trusts, wills, and gift strategies may still be needed—especially to take advantage of portability between spouses and to avoid avoidable penalties.
Track Annual Gift Exclusions In 2025, you can gift up to $19,000 per person tax-free. Proper use of annual exclusions remains a powerful tool—especially advantageous when combined with the higher lifetime exemption.
Mind the State Tax Rules Federal changes won’t affect state-level estate or inheritance taxes in many jurisdictions. A thorough review of your estate plan should include state-specific implications.
Bottom Line
The OBBBA’s permanent increase to a $15 million exemption is a major win for long-term estate planning. But it doesn’t mean you can relax, estate planning is still essential, and may even be simpler to get right with this new stability.
At Kamish & Associates, our team is here to help you navigate these changes, review your plans, and make sure your wealth strategy aligns with your legacy. Let us know when you'd like to sit down and plan for the long term.
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