What is Unified credit (basic exclusion amount)?
In short
Gift and estate taxes share a single lifetime exemption, the basic exclusion amount, sheltered by the unified credit. It is $13,990,000 for 2025, and the One Big Beautiful Bill Act raises it to $15,000,000 for 2026, indexed for inflation after that.
Key takeaways
- Taxable lifetime gifts use up the exemption that would otherwise apply at death.
- A surviving spouse can use a deceased spouse's unused exemption through portability.
- The top estate and gift tax rate is 40%.
Where it's tested
REG: Trusts, Estates & Gift Tax Basics — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under the One Big Beautiful Bill Act, what is the lifetime estate and gift tax exemption per individual beginning in 2026, and is it scheduled to sunset?