Page 1: What Is the $15 Million Lifetime Exemption?
In 2025, a big change is coming that can help families and business owners shield more wealth from estate taxes using the new $15 million lifetime exemption. This change means you can give away or pass down more money without paying federal estate or gift taxes.
What Is an Estate Tax?
Estate tax is a tax the government takes when someone dies and leaves money, property, or assets to their family. If your estate is worth a lot, part of it may go to taxes instead of to your loved ones.
What Is the Lifetime Exemption?
The lifetime exemption is the total amount of money or property you can give away during your life or after you die without paying estate or gift taxes. In 2025, this amount will be $15 million per person. That’s up from about $13.6 million in 2024.
If you plan right, this means a couple can pass down $30 million tax-free. That’s why it’s smart to shield more wealth from estate taxes using the new $15 million lifetime exemption now—before the rules change again.
Page 2: How to Use the $15 Million Exemption
To fully benefit from this new exemption, you need to plan carefully. Here are some key ways to use it:
1. Make Large Gifts Before You Die
You can give money, property, or shares in a business while you are still alive. These gifts will count against the $15 million limit. If you stay under the limit, you won’t pay any federal gift tax. This helps you shield more wealth from estate taxes using the new $15 million lifetime exemption early.
2. Use Trusts to Protect Assets
Trusts are legal tools that let you move wealth out of your name. Some popular trusts for this purpose include:
- Irrevocable Life Insurance Trusts (ILITs) – Keep life insurance payouts out of your estate.
- Grantor Retained Annuity Trusts (GRATs) – Transfer growing assets while keeping some income.
- Spousal Lifetime Access Trusts (SLATs) – Give your spouse access to income while keeping assets outside of both estates.
Using these tools helps you shield more wealth from estate taxes using the new $15 million lifetime exemption while still having some control or benefit from the assets.
3. Transfer Business Interests
If you own a business, 2025 is the perfect time to pass on shares to your children or others. When values are low (such as during a market dip), you can transfer more without hitting the $15 million limit. This helps protect future business growth from taxes.
Page 3: Why You Should Act Now
Sunset Warning: It May Not Last
Right now, the exemption is high. But unless Congress acts, the $15 million amount will drop sharply in 2026. It could go back to around $6 million per person. That’s why many advisors say: act now to shield more wealth from estate taxes using the new $15 million lifetime exemption.
Step-by-Step Strategy
- Talk to a Tax or Estate Planning Lawyer
Get advice on your assets, goals, and family situation. - Make a Wealth Transfer Plan
Choose how much you want to give now and what tools to use (like trusts or gifts). - File Gift Tax Returns If Needed
Even if no tax is due, you may still need to file IRS Form 709. - Review and Update Often
Life changes—marriage, kids, new assets. Make sure your plan stays up to date.
Final Thoughts
The new $15 million exemption gives you a rare chance in 2025 to protect your wealth. Whether you want to help your kids, give to charity, or keep your business in the family, you can shield more wealth from estate taxes using the new $15 million lifetime exemption—but only if you plan wisely and act soon.
Want help? Talk to a financial or estate advisor today and make the most of 2025.
