2020 Estate Tax Exemption
The 2020 Estate Tax Exemption is $11,580,000.
Effective 2020-01-01Source: Rev. Proc. 2019-44 (IRS)Verified 2026-08-29
Compared with 2019
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Basic exclusion amount | $11,400,000 | $11,580,000 | +$180,000 (+1.6%) |
Who it applies to
Estates of decedents dying in calendar year 2020
What changed this year, and why
For 2020, the IRS set the basic exclusion amount for the estate tax at $11,580,000 per decedent. This amount is used to determine the unified credit against estate tax under Internal Revenue Code § 2010.
Common questions
- What is the basic exclusion amount for the estate tax in 2020?
- For an estate of a decedent dying in calendar year 2020, the basic exclusion amount is $11,580,000. This amount is used to determine the unified credit against estate tax under IRC § 2010.
- What does the basic exclusion amount do?
- The basic exclusion amount sets the threshold below which no federal estate tax is owed. It is used to calculate the unified credit under § 2010, which offsets estate tax liability up to the tax attributable to that amount.
What counts toward the exemption
For estate tax purposes, the starting point is the gross estate, which is broad in scope. The rule is that every property right the decedent held at death is counted, even real estate located outside the United States. Beyond outright ownership, the gross estate also pulls in items that might not otherwise look like part of the estate: certain lifetime transfers where the decedent did not receive full payment, annuities, the includible portion of joint estates with right of survivorship and tenancies by the entirety, certain life insurance proceeds (even when payable directly to a named beneficiary rather than the estate), property subject to a general power of appointment held by the decedent, the surviving spouse's dower or curtesy (or statutory) interest, and the decedent's share of community property under applicable law. In short, the test is whether the decedent had a legal or beneficial interest of any kind. Only after these items are added together is the estate reduced by debts, expenses, losses, and the marital and charitable deductions before the $11,580,000 basic exclusion amount is applied to determine whether any tax is owed.
The gross estate includes all property in which the decedent had an interest (including real property outside the United States).
Instructions for Form 706 (Rev. August 2019), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
The nine-month deadline and the extension
Form 706 is due nine months after the date of the decedent's death. If the executor cannot meet that deadline, an automatic six-month extension of time to file is available by submitting Form 4768, "Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes." The extension is automatic once the form is filed - no approval letter is required - but it extends only the time to file the return, not the time to pay any tax owed (payment extensions have separate rules and may require a different showing). For estates that are filing Form 706 solely to make a portability election (transferring the deceased spousal unused exclusion amount to the surviving spouse), the same nine-month deadline applies, with the six-month extension available as well; if the return is not filed within that window, the portability election is lost unless the estate qualifies for one of the special relief procedures described elsewhere in the instructions. The basic exclusion amount for 2020 is $11,580,000.
You must file Form 706 to report estate and/or GST tax within 9 months after the date of the decedent's death. If you are unable to file Form 706 by the due date, you may receive an extension of time to file. Use Form 4768, Application for Extension of Time To File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes, to apply for an automatic 6-month extension of time to file.
Instructions for Form 706 (Rev. August 2019), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
Carrying an unused exemption to a surviving spouse
Portability allows a surviving spouse to use the deceased spouse's unused exclusion amount (DSUE) in addition to his or her own basic exclusion amount. For 2020, the basic exclusion is $11,580,000, and without portability any unused portion of a first-to-die spouse's exclusion would be lost forever. To claim it, the executor of the first spouse's estate must file a complete and timely Form 706 - that is, within 9 months of death or, if Form 4768 was filed, within the 6-month extension period. The election is not available on a late return unless the estate qualifies for special relief (such as Rev. Proc. 2017-34, which allows certain estates that had no filing requirement to file up to the second anniversary of death, or Regulations section 301.9100-3 for other late relief). Once the election is made on a timely filed return, the DSUE amount is computed on the estate tax return and carries over to the surviving spouse, who may apply it against his or her own taxable estate or taxable gifts. If the surviving spouse later remarries and that new spouse also dies, the surviving spouse may use only the last deceased spouse's DSUE.
Portability election. An executor can only elect to transfer the DSUE amount to the surviving spouse if the Form 706 is filed timely; that is, within 9 months of the decedent's date of death or, if you have received an extension of time to file, before the 6-month extension period ends.
Instructions for Form 706 (Rev. August 2019), United States Estate (and Generation-Skipping Transfer) Tax Return (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2019-44 (IRS)
- Basic exclusion amount
the basic exclusion amount is $11,580,000 for determining the amount of the unified credit against estate tax under § 2010.