IRS Announces Tax Inflation Adjustments for 2025

November 7, 2024

This month, the Internal Revenue Service (IRS) announced its annual inflation adjustments for the 2025 tax year. More than 60 tax provisions have been adjusted or changed that could directly impact taxpayers. Two changes could impact our estate planning clients:

Estate Tax Credits: Estates of decedents who die in 2025 will have a basic federal estate, gift, and generation-skipping exclusion amount of $13,990,000. This is a $380,000 increase from the 2024 Estate Tax Credit.

Annual Gift Exclusion: For the calendar year 2025, the annual gift exclusion will increase from $18,000 to $19,000 for individuals and $38,000 for married couples. The gift exclusion allows a person to make annual gifts and reduce their taxable estate.

We work with clients to manage estates of all sizes and complexities. We strive to ensure our clients can reduce their estate tax liability. 

Click here to read the complete release from the Internal Revenue Service

The Trust and Estate planning team at Gross Shuman PC has decades of experience assisting in the proper planning and execution of trust and estate documents. John F. Leone and his team are just a phone call away. Do not leave your lifetime of work at risk. Call us today. 716-854-4300 ext. 243 or jleone@gross-shuman.com.