Under the newly enacted One Big Beautiful Bill Act, the federal estate, gift, and generation-skipping transfer (GST) tax exemptions will increase to $15 million per individual (or $30 million for a married couple) beginning January 1, 2026.
Previously, the exemption amounts established under the 2017 Tax Cuts and Jobs Act were scheduled to expire on December 31, 2025, which would have reduced the exemption to approximately $7 million per taxpayer. The new law eliminates that sunset by permanently setting the estate, gift, and GST tax exemptions at $15 million per individual, with future adjustments indexed for inflation. The federal transfer tax rate remains at 40%.
While this change provides greater certainty and flexibility for long-term wealth transfer planning, it is important to note that the permanence of these exemptions is subject to future legislative changes.
The removal of the 2026 sunset allows taxpayers to plan with significantly more confidence, particularly when implementing gifting strategies, trust structures, and multigenerational planning.