Portability for Married Couples

Surviving spouse can inherit deceased spouse's unused exemption through portability Portability must be elected by filing IRS Form 706 within the filing deadline Combined exemption reaches $27.98M for married couples in 2025 Filing Form 706 is recommended even if no estate tax is owed

Historical Exemption Growth

Exemption increased from $675,000 in 2000 to current historic highs 2017 Tax Cuts and Jobs Act roughly doubled the exemption with inflation indexing Steady increases: $11.7M (2021), $12.92M (2023), $13.61M (2024), $13.99M (2025) Current exemption amounts represent all-time historical highs

Legislative Status and Planning

The One Big Beautiful Bill Act made the elevated TCJA exemption permanent Exemption will continue to be adjusted annually for inflation Permanence provides greater certainty for long-term estate planning strategies Monitor for future legislative changes that could alter exemption levels

Review gift and estate strategy annually to optimize exemption benefits File Form 706 to preserve portability — even when no estate tax is due Consider gifting strategies while exemption amounts remain at historic highs Work with an estate planning advisor to align your plan with current law

The Lifetime Exemption

Curated by: Rubric Advisors

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Understanding Lifetime Exemption

Federal gift and estate tax exemption allows tax-free asset transfers during life or at death
2025 exemption: $13.99M per person, $27.98M per married couple
Only transfers exceeding the exemption amount trigger gift or estate taxes
Tax rate of 40% applies to amounts above the exemption threshold

Our Approach Direct Indexing

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Understanding Lifetime Exemption

Portability for Married Couples

Historical Exemption Growth

Legislative Status and Planning

Key Takeaways

Related Topics

Estate Planning Deep Dive

Gifting Strategies: Annual Exclusion & Lifetime Exemption

Grantor Retained Annuity Trust (GRAT)

Understanding Lifetime Exemption

Portability for Married Couples

Historical Exemption Growth

Legislative Status and Planning

Key Takeaways

Related Topics

Estate Planning Deep Dive

Gifting Strategies: Annual Exclusion & Lifetime Exemption

Grantor Retained Annuity Trust (GRAT)