Lifetime Estate Gift Tax Exclusion 2024. The federal lifetime gift and estate tax exclusion will increase from $12.06 million in 2022 to $12.92 million for 2023. Federal estate taxes are based on your estate’s taxable value and collected before the inheritance is passed on.

In general, the gift tax and estate tax provisions apply a unified rate schedule to a person’s cumulative taxable gifts and taxable estate to arrive at a net tentative tax. The tax cuts and jobs act delivered a sizable increase in the tax exemption limit for estates and lifetime gifts — up to $13.61 million per person in.