Every dollar of lifetime gifting is a dollar less at death
Because gifts and the estate share one lifetime exemption, using it earlier through gifting doesn't create extra room — it just moves which side of the ledger uses it, though it does let any future growth on gifted assets happen outside the taxable estate entirely. Structuring a business for a future transfer? See the Business Valuation Calculator to establish its value first.
Frequently asked questions
Why is the exemption amount editable?
The federal lifetime exemption is inflation-indexed and rises most years, but it is also scheduled to roughly cut in half after 2025 under the Tax Cuts and Jobs Act sunset, unless Congress acts to extend it — a rare case where a large, near-term drop in a tax figure is written into current law. Confirm this year's exact number before relying on it.
What is portability (DSUE)?
A surviving spouse can inherit any of their late spouse's unused exemption by timely electing portability on that spouse's estate tax return, effectively letting a married couple combine both exemptions — enter that unused amount as the DSUE input if it applies.
Why a flat rate instead of a graduated schedule?
Federal estate tax does have a graduated schedule, but it tops out at 40% within the first $1 million above the exemption — for most estates that owe any tax at all, the effective rate on the excess is very close to the flat 40% top rate used here.
Last updated: June 2026