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Federal Estate Tax & 2026 TCJA Sunset Calculator

Estimate federal estate tax liability, lifetime gift exclusion limits, and the dramatic impact of the 2026 Tax Cuts and Jobs Act sunset slashing the basic exclusion from $13.61M to ~$7M.

Calculation & Generation Results

Estimated Federal Estate Tax (40%): $920,000 Sunset increases tax exposure by $2.3M without trusts
Total Basic Exclusion Amount: $14,200,000 (Combined Married)
Taxable Estate Subject to 40% Tax: $2,300,000
Net Inherited by Heirs: $15,580,000

About This Tool

Estimate federal estate tax liability, lifetime gift exclusion limits, and the dramatic impact of the 2026 Tax Cuts and Jobs Act sunset slashing the basic exclusion from $13.61M to ~$7M.

Frequently Asked Questions

What is the 2026 TCJA Estate Tax Sunset cliff?

Under the 2017 Tax Cuts and Jobs Act, the federal lifetime estate and gift tax exemption was doubled to $13.61 million per individual ($27.22 million for married couples in 2024). This provision expires on December 31, 2025, returning the exclusion to roughly $7 million per person in 2026 unless Congress acts.

What is the federal estate tax rate on amounts above the exclusion?

The top federal estate and gift tax rate is a flat 40% on all taxable assets exceeding the basic exclusion amount.

What is the DSUE (Portability) election for married couples?

Portability allows a surviving spouse to elect to claim any unused Deceased Spousal Unused Exclusion (DSUE) by timely filing IRS Form 706, effectively shielding double the statutory amount upon the second spouse's death.

Does the IRS 'claw back' gifts made before the 2026 sunset?

No. The IRS issued Treasury Decision 9884 confirming that there is no 'clawback' penalty on completed gifts made under the higher exemption before the sunset date.