The Tax Cuts and Jobs Act established a very favorable federal estate and gift tax regime, and the One Big Beautiful Bill Act made it permanent.

For 2026, the unified federal estate and gift tax exemption is a whopping $15 million, or effectively $30 million for a married couple because each spouse is entitled to a separate exemption.

For 2027 and beyond, the unified exemption amount will be adjusted for inflation.

The portion of your taxable estate that exceeds the federal exemption is subject to federal estate tax at graduated rates up to a top rate of 40 percent. You reach the 40 percent rate quickly, once the value of your estate exceeds the exemption by more than $1 million.

With today’s generous exemption, you may have concluded that you have no federal estate tax worries. It’s possible, in fact, that the whole subject of the federal estate tax may have fallen off your radar.

Not so fast! If you’re married, you need to keep one important thing front of mind to optimize your federal estate and gift tax position: the so-called portable exemption privilege. Here’s why you need to know about it.

Deceased Spouse’s Unused Exemption Is Portable

The unused unified federal estate and gift tax exemption ... Log in to view full article.