Tax Reference

Estate & Gifts

Estate tax planning, gifting strategies, trusts, step-up in basis, and HNW wealth transfer.
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The estate and gift tax exemption is $15 million per person under OBBBA - permanent and inflation-adjusted. Federal estate tax affects very few estates at this threshold, but income tax planning at death (the step-up in basis), trust structures, and beneficiary designations remain critical for virtually everyone with meaningful assets.

Estate Planning
Guide
Estate Planning Basics
$15M exemption, §1014 step-up, wills vs. trusts, beneficiary designations, portability.
Guide
Gift & Estate Tax Guide
$15M unified exemption, annual exclusion $19K, GST tax.
Guide
Trust Tax Guide
Revocable vs. irrevocable, SLAT, GRAT, IDGT, grantor rules.
Guide
OBBBA $15M Permanent Estate Exemption
OBBBA permanently raised unified estate/gift/GST exemption to $15M per individual ($30M MFJ via portability) effective 1/1/2026. No TCJA sunset. Inflation-indexed 2027+. 40% top rate unchanged. §1014 step-up preserved. Annual exclusion $19,000 (2026). No clawback. State estate tax planning still essential.
Guide
Portability and DSUE Deep Dive
§2010(c) DSUE mechanics. Rev. Proc. 2022-32 5-year late portability election. Last Deceased Spouse rule. Form 706 filing requirement even for non-taxable estates. GST exemption NOT portable. Multiple marriages strategy. Open SOL on DSUE redetermination under §2010(c)(5)(B). $30M combined exemption under OBBBA.
Guide
§1014 Step-Up Basis at Death
Section 1014 complete mechanics. FMV step-up at decedent's date of death (or alternate valuation date §2032). OBBBA made $15M basic exclusion PERMANENT. IRD exception §1014(c) - NO step-up for IRAs, 401(k)s, annuities, deferred comp, Series EE bond interest, installment notes. Community property DOUBLE step-up §1014(b)(6) at first spouse's death. Boomerang rule §1014(e) - 1-year pre-death gift to donor. Consistent basis reporting Form 8971 (T.D. 9991 / 10054). §2032 alternate valuation - all-or-nothing election. §2032A special use 2026 maximum $1,460,000. Rev. Rul. 2023-2 irrevocable grantor trust NOT in estate = NO step-up.
HNW Planning
Guide
HNW Planning Guide
Pre-exit planning, concentrated positions, charitable strategies.
Guide
NRA Estate Tax
$60K exemption for nonresident aliens, QDOT trusts.
Additional Resources
Guide
Donor-Advised Fund (DAF)
Immediate deduction; tax-free growth; bunching charitable gifts.
Guide
§1035 Exchange
Tax-free swap of life insurance and annuity contracts.
Gifts, Transfers & Inheritance
Guide
Form 709 Gift Tax Return
$19,000 annual exclusion, $15M lifetime, gift splitting, direct tuition/medical exclusion.
Guide
Marital Deduction
Unlimited §2056/§2523, QTIP, QDOT non-citizen spouse, $190K gift exclusion.
Guide
Inherited Money & Property
§102 exclusion, §1014 step-up, inherited IRA 10-year rule, estate tax $15M threshold.
Guide
529 Superfunding
Front-load $190K/couple, 5-year gift averaging, estate planning use case.
Guide
Grantor Trust Rules §671-678
IDGT estate freeze, sale to grantor trust, Rev. Rul. 2023-2 no step-up.
Guide
Generation-Skipping Transfer Tax
$15M GST exemption permanent, 40% rate, dynasty trusts, no portability.
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