How Federal Estate Tax Works

This estate tax calculator models the US federal estate tax: gross estate minus debts, expenses, and charitable bequests, then minus the unified credit exemption, with the remainder taxed at the top 40% rate. The 2025 exemption is $13.99 million per person; the unlimited spousal (marital) deduction is not modeled.

Planning Notes

The exemption is scheduled to sunset to roughly $7 million per person after 2025 unless Congress acts. Lifetime gifts use the same unified credit, so large gifts during life reduce the exemption available at death.

What to Do Next

If your estate approaches the exemption, consider trusts, annual exclusion gifts ($19,000 per recipient in 2025), and spousal planning. Estate law is state-specific — consult an attorney or CPA for definitive guidance.