Gift Tax: Taxes After a Death (2025 IRS Guide)

This guide covers “Gift Tax” within taxes after a death. The following material presents the IRS treatment of this topic, including the qualifications, exceptions, and examples in the source section. Read the rules alongside the facts of your own situation before deciding what to report, deduct, or document.

Adapted from Publication 559 (2025), Survivors, Executors, and Administrators, published by the Internal Revenue Service. This guide retains the source edition’s years, amounts, deadlines, and examples. It is guidance for that edition, not a statement that the same figures apply to every tax year.

Context for these rules

Caution: This publication doesn't contain all the rules and exceptions for federal estate, gift, or generation-skipping transfer (GST) taxes, nor does it contain all the rules that apply to nonresident noncitizens. If you need more information, see Form 709; Form 709-NA; Form 706; Form 706-NA, United States Estate (and Generation-Skipping Transfer) Tax Return, Estate of nonresident not a citizen of the United States; and the related instructions. This publication also doesn't contain any information about state or local taxes. That information should be available from your state and local taxing authority.

The discussion below is to give you a general understanding of when estate, gift, and GST taxes apply and when they don't. It explains how much money or property can be given away during life or left to heirs at death before any tax will be owed. If the decedent gave someone money or property during the decedent’s life, the personal representative may have to pay the federal gift tax on behalf of the decedent if it wasn't previously paid. The money and property owned by the decedent at death is the estate and may be subject to federal estate tax. This is in addition to any federal income tax that is owed on the gross income of the estate.

Most gifts aren't subject to the gift tax and most estates aren't subject to the estate tax. For example, there is usually no tax if a gift is given to a spouse or charity or if the estate goes to the decedent’s spouse or charity at death. If gifts are made to someone else, the gift tax usually doesn't apply until the value exceeds the annual exclusion for the year. See Annual exclusion under Gift Tax, later. Even if the gift or estate tax applies, it may be eliminated by the applicable credit amount, discussed later.

Gift Tax

The gift tax applies to lifetime transfers of property from one person (the donor) to another person (the donee). A gift is made if tangible or intangible property (including money), the use of property, or the right to receive income from property is given without expecting to receive something of at least equal value in return. If something is sold for less than its full value or if a loan is made without interest or with reduced (less than market rate) interest, a gift may have been made.

The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule.

Generally, the following gifts aren't taxable gifts.

• Gifts, excluding gifts of future interests, that aren't more than the annual exclusion for the calendar year.

• Tuition or medical expenses paid directly to an educational or medical institution for someone else.

• Gifts to your spouse, if your spouse is a U. S. citizen.

• Gifts to a political organization for its use.

• Gifts to certain exempt organizations described in section 501(c)(4), 501(c)(5), and 501(c)(6).

• Gifts to charities.

Annual exclusion.

A separate annual exclusion applies to each person to whom a gift is made. The gift tax annual exclusion is subject to cost-of-living increases.

Gift Tax Annual Exclusion

In 2025, generally, gifts valued up to $19,000 per person could have been given to any number of people, and none of the gifts will be taxable. If the decedent's spouse is not a U. S. citizen, the annual exclusion for gifts made to the decedent’s spouse in 2025 is $190,000. However, gifts of future interests can't be excluded under the annual exclusion. A gift of a future interest is a gift that is limited so that its use, possession, or enjoyment will begin at some point in the future. If the decedent was married, both the decedent and spouse could have separately given gifts valued up to $19,000 to the same person without making a taxable gift. If one spouse gave a gift valued at more than the $19,000 exclusion, see Gift splitting, later.

Example 1.

The decedent gave a relative a cash gift of $8,000. It is the decedent’s only gift to this relative in 2025. The gift isn't a taxable gift because it isn't more than the $19,000 annual exclusion.

Example 2.

The decedent paid the $19,000 college tuition of a friend directly to the friend’s college. Because the payment qualifies for the educational exclusion, the gift isn't a taxable gift.

Example 3.

The decedent gave $29,000 to the decedent’s 25-year-old child. The first $19,000 of the gift isn't subject to the gift tax because of the annual exclusion. The remaining $10,000 is a taxable gift. As explained later under Applying the applicable credit to gift tax, the estate may not have to pay the gift tax on the remaining $10,000. However, a gift tax return must be filed.

More information.

See Form 709 and Form 709-NA and their instructions for more information about taxable gifts.

Gift splitting.

If the decedent or the decedent’s spouse made a gift to a third party, the gift can be considered as made one-half by the decedent and one-half by the decedent’s spouse. This is known as gift splitting. Both spouses must be U. S. citizens or residents, must agree to split the gift, and, in the case of a deceased spouse, the personal representative will act on behalf of the decedent. If there is consent to split the gift, both spouses can apply the annual exclusion to one-half of the gift. For gifts made in 2025, gift splitting allows married couples to give up to $38,000 to a person without making a taxable gift. If a gift is split, both spouses must file a gift tax return to show an agreement to use gift splitting. Form 709 must be filed even if half of the split gift is less than the annual exclusion.

Example.

Jaden and Jaden’s spouse, Sammy, agreed to split the gifts that they made during 2025. Jaden’s sibling’s child, Morgan, received $23,000 from Jaden. Sammy’s sibling’s child, Jo, received $20,000 from Sammy. Although each gift is more than the annual exclusion ($19,000), by gift splitting, they made these gifts without making a taxable gift. Jaden’s gift to Morgan is treated as one-half ($11,500) from Jaden and one-half ($11,500) from Sammy. Sammy’s gift to Jo is also treated as one-half ($10,000) from Sammy and one-half ($10,000) from Jaden. In each case, because one-half of the split gift isn't more than the annual exclusion, it isn't a taxable gift. However, each of them must file a gift tax return.

Applying the applicable credit to gift tax.

After you determine which gifts are taxable, figure the amount of gift tax on the total taxable gifts and apply the applicable credit for the year.

Example.

In 2025, the decedent gave the following gifts and amounts to the following people.

• Morgan, a relative, a cash gift of $8,000. It is the decedent’s only gift to Morgan this year.

• Danny, a friend, the decedent paid the $19,000 college tuition.

• Avery, 25-year-old child, $29,000.

• Kai, 27-year-old child, $29,000.

The decedent never gave a taxable gift before and does not have any DSUE. Apply the exceptions to the gift tax and the applicable credit as follows.

1. Apply the educational exclusion. Payment of tuition expenses is not subject to the gift tax. Therefore, the gift to Danny is not a taxable gift.

2. Apply the annual exclusion. The first $19,000 given is not a taxable gift. Therefore, the $8,000 gift to Morgan, the first $19,000 of the gift to Avery, and the first $19,000 of the gift to Kai are not taxable gifts.

3. Apply the applicable credit. The gift tax on $20,000 ($10,000 remaining from the gift to Avery plus $10,000 remaining from the gift to Kai) is $3,800. Subtract the $3,800 from the applicable credit of $5,541,800 for 2025. The applicable credit that can be used against the gift or estate tax in a later year is $5,538,000.

As the personal representative of the decedent's estate, you do not have to pay any gift tax for 2025. However, you do have to file Form 709.

For more information, see the Table for Computing Gift Tax in the Instructions for Form 709.

Filing a gift tax return.

Generally, a gift tax return must be filed if any of the following apply.

• Gifts were given to at least one person (other than the decedent’s spouse) that are more than the annual exclusion for the year.

• The decedent and the decedent’s spouse split a gift.

• The decedent gave someone (other than decedent’s spouse) a gift of a future interest that the recipient can't actually possess, enjoy, or receive income from until some time in the future.

• The decedent gave the decedent’s spouse an interest in property that will be ended by some future event.

A gift tax return doesn't have to be filed to report gifts to (or for the use of) political organizations or gifts made by paying someone’s tuition or medical expenses.

The following deductible gifts made to charities also don't need to be reported.

• An entire interest in property, if no other interest has been transferred for less than adequate consideration or for other than a charitable use.

• A qualified conservation contribution that is a perpetual restriction on the use of real property.

More information.

If you think you need to file a gift tax return, see Form 709 and Form 709-NA and their instructions for more information. You can get publications and forms at IRS.gov/Forms. You may want to speak with a qualified tax professional to receive help with gift tax questions.

Using the guidance

Keep the documents that establish the dates, amounts, and circumstances described above. References to other chapters, forms, worksheets, or earlier and later sections refer to the linked IRS publication. Check the full publication and its updates before relying on a rule for a different tax year or a situation not addressed here.

Sources and further reading

• Publication 559 (2025), Survivors, Executors, and Administrators: Estate and Gift Taxes — Gift Tax — Internal Revenue Service; 2025 edition.

The cited U.S. government text is in the public domain. Source accessed October 28, 2026. Fynoptic has organized this material for educational use and is independent of, and not endorsed by, the IRS.