federal estate tax exemption

The federal estate tax exemption, which the IRS calls the basic exclusion amount, is the value you can pass on, through gifts and at death, before federal estate tax applies. For 2026, the IRS lists $15,000,000 per person. That figure comes from a law signed July 4, 2025. Congress can change it, so check the current number.

Spouses. The IRS says estates of decedents survived by a spouse may elect to pass any unused exemption to the surviving spouse. That requires a timely estate tax return.

A round example. For example, if one spouse leaves everything to the other, no estate tax is due on that transfer. If that spouse later dies with a $12,000,000 estate, it sits below the $15,000,000 figure, so no federal estate tax applies. These numbers are for illustration only.

California. Our post on California estate tax explains why planning still matters here.

Why it matters to your plan. Even a family under the exemption still has probate, control and giving goals to plan for. See our trust and estate planning page.