ArticleThe IRS adjusts tax brackets and other tax-related amounts for inflation on an annual basis. Based data from the Bureau of Labor Statistics through August 2024, experts have projected the following adjustments to some of relevant estate planning amounts for 2025:
| 2025 (est.) | 2024 | Increase | |
| Estate tax basic exclusion amount | $13,990,000 | $13,610,000 | $380,000 |
| Annual exclusion for gifts | $19,000 | $18,000 | $1,000 |
| Beginning of highest marginal income tax bracket for trusts/estates | $15,650 | $15,200 | $450 |
Some key international estate planning figures are projected as follows:
| 2025 (est.) | 2024 | Increase | |
| Annual exclusion for gifts to non-citizen spouses | $190,000 | $185,000 | $5,000 |
| Covered expatriate – annual net income tax test | $206,000 | $201,000 | $5,000 |
| Covered expatriate – gain exclusion | $890,000 | $866,000 | $24,000 |
| 6039F Large gift threshold (for 3520 reporting) | $20,116 | $19,570 | $546 |
The official 2025 adjustments will likely be published in late October/early November. Assuming these projections are correct, one important takeaway is that clients who have exhausted all of their current estate tax exclusion amount will be able to transfer an additional $380,000 ($760,000 for married clients) of wealth without incurring any federal transfer tax. As a reminder, absent future legislation, the estate tax basic exclusion amount will be cut roughly in half beginning in 2026, so planning now is even more important.
A link to a full set of 2025 Projected U.S. Tax Rates by Bloomberg Tax can be found here – 2025 Projected U.S. Tax Rates (bloomberglaw.com)