What is the 2025 federal estate tax exemption and why does 2026 matter?

In 2025 each person can pass roughly $13.99 million free of federal estate tax (about $27.98 million for a married couple using both exemptions). Estates above that face up to a 40% federal tax on the excess. The catch is the sunset: under current law the elevated exemption is scheduled to drop by roughly half at the end of 2025, falling to an inflation-adjusted figure around $7 million per person in 2026 unless Congress acts. That makes 2025 a window for very large estates to consider locking in the higher exemption through lifetime gifts, since the IRS has confirmed gifts made under today's higher exemption won't be clawed back later. Most families never come close to these numbers, but if your net worth runs into the eight figures it's worth a conversation now. See wealthserene.com/assessments/estate-readiness.