Congress Nears Approval of $15 Million Estate Tax Exemption, Easing Burden for Wealthy Families

A sweeping tax‑and‑spending measure moving through Congress would finally resolve wealthy families’ scramble to dodge looming estate taxes. Both the House‑passed bill and the Senate Finance Committee’s newly released plan would permanently shield $15 million per individual from federal estate levies.
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Under current law, the 2017 tax overhaul grants nearly $14 million of protection, but that elevated exemption disappears at the end of 2025. Affluent Americans, fearing that imminent cliff, have been hurriedly transferring assets during their lifetimes to lock in today’s richer allowance.
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Should the proposed legislation succeed, more households than ever would completely sidestep estate taxes upon death. Consider an individual worth $15 million dying in 2025: under existing rules they would owe roughly $3.1 million to Washington. If the same person passed away this year, before the sunset, liability would shrink to about $404,000 because of the bigger exemption.
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Under the new bill, their heirs would write no federal check at all, illustrating the enormous stakes tied to timing. A married couple collectively worth $30 million who both die in 2026 could save approximately $6 million compared with current projections.

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Such windfalls for the affluent have intensified criticism that the sprawling package favors rich families while offering only fleeting relief to lower earners.
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“Lawmakers bent over backward to enshrine permanent tax breaks for the wealthy, whereas many modest‑income provisions expire,” argued Samantha Jacoby of the Center on Budget and Policy Priorities.
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The mechanics of the proposal are straightforward: beginning in 2026 an individual may die with $15 million, and a couple with $30 million, free of estate tax. These ceilings would adjust annually with inflation and, crucially, carry no sunset clause.
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On paper the gap between $13.99 million and $15 million seems small, yet the real comparison is to the roughly $7.1 million level that would revive absent action. The higher allowance enacted in 2017 was deliberately temporary to keep that law’s cost near $1.5 trillion, after President Trump initially campaigned for full repeal.
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Senate Majority Whip John Thune, long a champion of abolition, now suggests the proposed threshold “is where things will likely settle,” while the 40% top rate would remain.
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Even under today’s rules, the levy is rare: in 2023 fewer than one in a thousand estates owed anything; before the 2017 expansion roughly double that share paid.
Treasury forecasters say locking in the richer exemption would cost the federal budget about $212 billion over the next decade, relative to letting it lapse.
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Estate lawyers emphasize that permanence changes everything, especially for family businesses that can now map succession plans without fearing policy whiplash.
“Knowing the number will not shrink eliminates enormous uncertainty,” noted Palmer Schoening, who leads the Family Business Coalition lobbying for repeal. Households with less than $15 million in net worth could largely ignore intricate estate‑tax tactics once the bill passes, advisors say.
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The estate tax has whipped back and forth politically since 2000, and many professionals anticipated tighter rules had Democrats swept last year’s elections.
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Future Congresses could always reverse course, meaning “permanent” is only as firm as the next voting cycle, cautions Seattle attorney Matthew Widmyer. Many families maintain life‑insurance policies to supply cash for estate taxes; those between $7 million and $15 million may now forgo such coverage.
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Likewise, they will feel less pressure to gift assets during life solely to shrink taxable estates. Yet state levies remain a trap, because many jurisdictions impose their own estate or inheritance taxes with much lower thresholds.
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Rapidly appreciating real estate can unexpectedly push middle‑class residents into those brackets when they sell or die. Oregon begins taxing estates above $1 million with rates up to 16%, while Washington State now tops out at 35% on assets exceeding $3 million.
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Couples there typically create “credit‑shelter” trusts so the first spouse’s exemption is preserved for the survivor, effectively doubling their shield. For families well below federal caps, basic documents still matter: wills or revocable trusts clarify who inherits property rather than leaving decisions to state intestacy formulas.
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An estate‑planning bundle usually also includes medical and financial powers of attorney and living wills that outline end‑of‑life choices. “Plenty of estate planning has zero connection to the tax code,” observed Boulder attorney Connie Tromble Eyster. Households above the new thresholds will still rely on familiar tactics, such as irrevocable trusts that move appreciation outside their estates for future generations.

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