Trump estate tax exemption 2025 would hit $15 million under new bill

You might think estate tax reform is something only billionaires care about. Trust fund drama. Yacht inheritance. Succession-level stuff. But Donald Trump’s new proposal to raise the federal estate tax exemption to $15 million—per person—and make it permanent? That’s a big deal for anyone even remotely building wealth, especially if you’re stacking assets in property, startup equity, crypto, or a family business. This isn’t just tax law. It’s a roadmap for who gets to keep what—and how easy it becomes to pass that wealth forward without Uncle Sam knocking.

Let’s break this down. Right now (2024), the federal estate tax exemption is $13.61 million for individuals, and double that—$27.22 million—for married couples. That means you can pass down that much in assets when you die without triggering federal estate tax. This high threshold comes from the 2017 Tax Cuts and Jobs Act (aka Trump’s first major tax win). But here’s the kicker: it sunsets in 2026.

If Congress doesn’t act, the exemption drops to roughly $6.8 million per person, cutting the tax-free transfer limit in half. That’s a huge difference. And not just for oligarchs. Plenty of upper-middle-class families—especially in places like California, New York, or Singapore expat hubs—could see their estates cross that lower threshold just from rising home values, business stakes, or a solid investment portfolio.

The new Trump-backed bill would push the exemption even higher—to $15 million per person—and make it permanent. That’s not a patch. That’s a paradigm shift. The estate tax, which currently kicks in at 40% on amounts above the threshold, would now affect even fewer people, cementing the divide between those who can preserve generational wealth and those who scramble to build it anew.

Let’s say you and your spouse pass away with $29 million in assets. Under today’s law? You’d probably pay zero estate tax. Under 2026 law? You’d pay tax on over $15 million of that. Under this new bill? You’d still owe nothing. That’s the difference.

Here’s a reality check: less than 0.1% of estates pay any federal estate tax. But zoom in and you’ll see that the ones who do are often people with real but not absurd wealth: mid-stage startup founders, family business owners, real estate landlords, high-income professionals with long compounding careers.

Especially in a world where stock options can go from paper to payout in a single liquidity event, or where a crypto wallet from 2017 suddenly hits eight figures, these thresholds matter more than you think. This isn’t about wealth hoarding. It’s about wealth trajectory.

Let’s talk strategy.

If the $15M exemption becomes law, you’ll see:

• A resurgence in Spousal Lifetime Access Trusts (SLATs) for married folks who want to lock in exemptions while keeping access to income.
• Dynasty trusts becoming standard for Gen X and elder millennials passing early wealth to Gen Z kids.
• More use of Grantor Retained Annuity Trusts (GRATs) to transfer high-growth assets like startup equity or crypto with little or no tax liability.

Plus, smart families and wealth managers will move quickly to lock in today’s exemption levels before 2026—just in case this bill doesn’t pass.

Even if you’re not remotely close to $15M in net worth, this still matters. If you’re working in tech, building a side hustle into a real business, or investing in crypto, the trajectory of your wealth could cross into estate tax territory faster than you think. This law won’t just affect the top 0.1% anymore. It could shape the behavior of the top 5–10% of earners—especially those building early and aiming long.

And here’s where it gets spicy: many estate planning techniques require advanced setup, not last-minute wills. That means if you wait until you're “wealthy enough,” you’re probably already too late to use them well.

Predictably, this bill is already a lightning rod. Progressive economists and Democrats call it a gift to dynastic wealth. They argue that locking in high exemptions further entrenches inequality—and removes one of the last federal checks on multi-generational asset hoarding.

Their wishlist? Lower the exemption back to $5–7 million. Kill the “step-up in basis” loophole (which resets capital gains at death). Introduce a flat inheritance tax. But here’s the thing: If Republicans retake full control in 2025, this bill—or something close to it—could very realistically pass. And if it does? Your estate planning window just got a lot wider.

Don’t forget: State-level estate and inheritance taxes are a thing—and they don’t always match the federal exemption. States like New York, Massachusetts, Oregon, and Washington tax estates at much lower thresholds (some starting at $1 million). So even if Trump’s bill passes federally, you might still get hit at the state level. If you’re mobile or digital-nomad-adjacent, this could shape where you choose to live, invest, or retire.

Let’s not ignore the elephant in the Gen Z room: crypto wallets and digital asset holdings. If you’ve been stacking ETH, NFTs, or early-stage tokens and haven’t factored in estate tax treatment, now’s the time to get your digital house in order.

Here’s what’s often missed:

• Access: If your heirs don’t have seed phrases or multisig keys, they can’t claim the assets—regardless of the tax law.
• Valuation: Volatile assets make estate calculation tricky. The IRS might value your airdropped altcoin bag way higher than what you can actually sell it for.
• Transfer strategy: Some advanced trusts let you transfer digital assets without triggering a taxable event—if you plan early.

The $15M exemption gives you more headroom to include these assets, but only if you’ve structured things right.

Even if this bill never makes it into law, it’s a preview of the next 10 years of wealth policy battles. We’re entering an era where wealth structure beats wealth size. Where the winners aren’t just those who earn the most—but those who organize their money best.

So, here’s your game plan:

• Start tracking your net worth across all assets (cash, equity, property, crypto, insurance).
• Understand how trusts, gifting, and tax law impact future transfers—not just income now.
• Talk to a real planner or attorney if you’re anywhere near $5M net worth. Because by 2026, that might be the new bar again.

And if Trump’s plan becomes law? Congrats—you just got breathing room. But don’t wait to start planning. That’s what real generational wealth looks like. Even if you’re far from the estate tax threshold, the smartest play is to act like you’re heading there.Why? Because the same tools that help ultra-wealthy families avoid taxes can also help regular high earners build smarter legacies. We’re talking about:

• Early gifting: You can give up to $18,000/year per recipient (in 2024) without triggering gift tax. That’s a stealth way to move wealth now.
• Beneficiary setup: Double-check how your brokerage accounts, life insurance, and even crypto exchanges list your heirs.
• Digital vaults: Create a secure folder or platform that stores all your logins, keys, and estate documents. Don’t leave your family guessing.

More importantly, it’s about being proactive, not reactive. Whether or not Trump’s bill becomes law, the tax code is becoming a battleground for generational wealth—and ignoring it doesn’t make it go away. Start now, stay flexible, and remember: you don’t need to be a billionaire to benefit from smart estate planning. You just need to stop waiting for someone to hand you the “right” time.

Because honestly? The window’s already open. You just need to step through.