New Estate and Gift Tax Exemption under OBBBA

The new tax act increased the exemption and made permanent at $15 million per individual ($30 million for married couples) beginning in 2026, to be indexed annually for inflation. Accordingly, estate and gift tax planning for 2025 should be updated to evaluate the timing of potential transactions and to review legal documents to maximize benefits under the new federal law, and also to determine differences in state laws.