Estate Tax Exemption Increases For 2021

There is a federal estate tax that applies to those estates that are worth a significant amount.  The exemption from the federal estate tax has increased continuously since 2002.  Prior to 2002, the exemption from the federal estate tax was $675,000.  In 2002 the exemption increased to $1,000,000.  Since 2004, the exemption from the federal estate tax has been greater than $1,000,000.

In 2020, the exemption from the federal estate tax was $11,580,000.  Beginning January 1, 2021, the exemption from the federal estate tax is now $11,700,000.

The exemption for the federal estate tax has increased for a married couple.  In 2020, the exemption for a married couple was $23,160,000.  Effective January 1, 2021, the exemption from the federal estate tax for a married couple is $23,400,000.