2025 Updated Estate & Gift Tax Numbers - Makofsky Valente Law Group, P.C.

 

What is Changing in 2025?

It is a new year, which means that the IRS and New York State have released updated estate and gift tax exclusion amounts. If you have assets in excess of the exclusion amounts, you should consider creating a plan to eliminate or reduce estate and gift taxes.

For someone who dies in 2025, the numbers are as follows:

  • The federal estate tax exemption has increased from $13,610,000 per person in 2024, to $13,990,000 per person in 2025. This means that in 2025 a person can gift up to that amount during their life, or after death, free of federal estate and gift tax. Any exemption amount not used by an individual can, with proper planning, be transferred and used by a surviving spouse.
     
  • The New York State estate tax exemption amount is increased to $7,160,000  per person for 2025. While there is no New York State gift tax, if an individual who made gifts dies within three years of making the gift, the gifted amount is added back into the estate and is included when determining if there is New York estate tax owed.
     
  • In 2025, the annual federal gift tax exclusion has been raised to $19,000. This means that you may gift up to $19,000 per person, per year, tax free and no gift tax return needs to be filed in connection with the gift. Keep in mind however, if your estate is more modest than $7,160,000 no gift or estate tax will ever be due. Children love annual gifts, and you may love giving them, but often they provide no tax savings (although they result in many hugs and kisses).

Keep in mind — If you have funds in excess of the New York exemption amount, now is a great time to look into incorporating lifetime gifting strategies into your estate plan.
If your estate is close to these thresholds, there are many ways to plan. We are here to help you find a strategy that will fit your particular situation. Call or email us so we can assist!

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