The federal estate tax exemption is a critical aspect of estate planning, determining the value of assets that can be passed on to heirs tax-free. This exemption is set by the government and is adjusted periodically for inflation. Understanding the estate tax exemption for 2025 is essential for individuals and families planning their estates.
The estate tax exemption has significant implications for estate planning. It affects the amount of wealth that can be transferred to heirs without incurring estate taxes. Proper planning allows individuals to maximize the use of the exemption and minimize the tax burden on their estates. It is important to note that the estate tax exemption is not the same as the gift tax exemption, which applies to gifts made during an individual’s lifetime.
