Estate tax sunset 2025 refers to the scheduled expiration of the federal estate tax, currently scheduled to occur in 2025. The estate tax is a tax on the transfer of property from a deceased person to their heirs or beneficiaries. Without congressional action to extend or make permanent the estate tax, it will cease to exist in 2025.
The estate tax has been a part of the U.S. tax system since 1916. It is designed to raise revenue and to reduce the concentration of wealth in the hands of a few families. The estate tax is currently imposed on estates valued at over $12.06 million for individuals and $24.12 million for couples. The tax rate ranges from 18% to 40%, depending on the value of the estate.
