IRS Gift and Estate Tax Limits for 2025

October 8, 2025 Posted In Estate Planning,Estate Taxes,Firm News
by Colorado Estate Matters

As we enter 2025, several key updates have been made to federal estate and gift tax limits, presenting valuable opportunities for individuals and families to optimize their estate planning strategies. Here’s a breakdown of the most significant updates:

• Estate and gift tax exemptions for individuals are set at $13.99 million.
• Estate and gift tax exemptions for married couples are set at $27.98 million.
• The annual gift tax exclusion for 2025 is $19,000 per recipient.

These adjustments provide increased flexibility for tax-efficient wealth transfers and estate planning.

What Is Included in Estate Tax?

For the purposes of calculating estate taxes in 2017, it is important to understand what assets are included in, versus excluded from the taxable estate. According to the IRS, the “Gross Estate” includes anything a decedent owned or had interest in at the time of death. This can include both probate and non-probate property like (but not necessarily limited to):

• Cash and securities
• Real estate holdings
• Insurance policies
• Assets held by trusts
• Annuities
• Business-related interests.

In contrast, assets typically not included in the Gross Estate are those that are owned by a decedent’s spouse entirely, as well as “lifetime” gifts that are complete (i.e., there are no outstanding powers or controls exerted over those gifts).

Can I Do Anything to Limit My Estate Tax Obligations?

Yes, and the specific options you have will depend on the nature of your estate, as well as your beneficiaries and your overall estate planning goals.

For instance, you may want to designate certain assets for charity or give gifts to loved ones now (or in the near future). It’s advisable that you speak to an estate planning lawyer to find out more about your best options for minimizing future estate and/or gift tax liability.

Ready for Personalized Advice? Contact Colorado Estate Matters

For experienced help with estate planning and/or estate taxes, contact a trusted estate planning attorney at Colorado Estate Matters, Ltd. Our team of skilled lawyers provides a thoughtful, comprehensive approach to our clients’ estate planning and administration needs – and we are ready to meet with you and develop a plan for protecting your interests (and meeting your goals) as you proceed with any aspect of estate planning or administration.

We can discuss your estate planning needs and different options during our consultation. To schedule this meeting, call us at (303) 713-9147.