Right now, individuals can give away up to $13.61 million tax-free over their lifetime. For married couples, that number doubles to $27.22 million. It’s part of a temporarily expanded federal estate and gift tax exemption, and unless Congress acts, it expires at the end of 2025.
That means 2025 could be the last full year to move millions out of your estate without handing the IRS a 40% cut.
Why this loophole exists
The current exemption level stems from the 2017 Tax Cuts and Jobs Act, which nearly doubled the lifetime estate and gift tax exemption. It was always meant to sunset — and when it does, the exemption will fall back to around $6 million to $7 million per person, adjusted for inflation.
So if you’re sitting on significant assets, the IRS is essentially saying: “Move them now, or lose your chance.”
And crucially, there’s no clawback. The IRS has made it clear — gifts made under today’s higher limits won’t be taxed retroactively after the exemption drops. Don’t be afraid to seek professional help. ​​The advisors on our partner SmartAsset’s platform have been rigorously vetted through their proprietary due diligence process.
What high-net-worth families are doing right now
Wealth managers and estate attorneys are already busy helping clients take advantage of the window. Here’s how:
- Making outright gifts: Large, direct gifts to children or beneficiaries lock in today’s exemption while keeping things relatively simple.
- Creating trusts: Vehicles like SLATs (spousal lifetime access trusts) and GRATs (grantor retained annuity trusts) allow you to gift assets in a way that’s both strategic and tax-efficient.
- Gifting business interests or real estate: Transferring fractional interests in a business or investment property — often with valuation discounts — can stretch the exemption even further.
- Leveraging generation-skipping transfers: Families with multi-generational wealth are coordinating these moves alongside their generation-skipping transfer (GST) exemptions for long-term tax savings.
Why you need to act now
Estate planning takes time. You’ll need valuations, trust documents, strategy sessions, and possibly family meetings. You can get matched with up to three fiduciary advisors with our partner, SmartAsset, so you can get professional advice.
If you wait until late 2025, you may find yourself in a mad scramble alongside everyone else trying to beat the deadline. Worse, you could run out of time and be forced to settle for a less-advantageous plan.
It’s about making your family richer
This isn’t about avoiding taxes — it’s about maximizing how much money your family keeps. If you have assets that could push your estate above $6 million or $7 million, you have a rare chance right now to lock in tax-free transfers at nearly double the future limit.
Most people won’t need this strategy — but if you do, waiting could be a multimillion-dollar mistake.
