Important Numbers for 2025
DISCLAIMER: This Article was written on February 13, 2025 and uses the numbers and figures which were available at that time. Please check your primary sources before relying on any numbers listed herein.
As we enter a new year, there will always be changes to certain laws, limits, schedules, adjustments, and values. The purpose of this article is to serve as a one-pager for any estate planning-relevant numbers which may be useful for clients, professionals, or anyone else.
Taxes
The taxes which are usually relevant in estate planning include income tax, including capital gains tax, estate tax, and gift tax. For more information on taxes and how they may affect your estate plan, please see our article, Death and Taxes.
For more information and for the source of these figures, please see the IRS website.
Income Tax
Individuals.
Standard Deduction - $15,000
<$11,925: 10% of the taxable income
11,925 - $48,475: $1,192.50 - plus 12% of the excess over $11,925
$48,475 - $103,350: $5,578.50 plus 22% of the excess over $48,475
$103,350 - $197,300: $17,651 plus 24% of the excess over $103,350
$197,300 - $250,525: $40,199 plus 32% of the excess over $197,300
$250,525 - $626,350: $57,231 plus 35% of the excess over $250,525
$626,350 and up: $188,769.75 plus 37% of the excess over $626,350
Married, Filing Jointly
Standard Deduction - $30,000
<$23,850 - 10% of the taxable income
$23,850 - $96,950: $2,385 plus 12% of the excess over $23,850
$96,950 - $206,700: $11,157 plus 22% of the excess over $96,950
$206,700 - $394,600: $35,302 plus 24% of the excess over $206,700
$394,600 - $501,050: $80,398 plus 32% of the excess over $394,600
$501,050 - $751,600: $114,462 plus 35% of the excess over $501,050
$751,600 and up: $202,154.50 plus 37% of the excess over $751,600
Estates and Trusts
<$3,150: 10% of the taxable income
$3,150 -$11,450: $315 plus 24% of the excess over $3,150
$11,450 - $15,650: $2,307 plus 35% of the excess over $11,450
$15,650 and up: $3,777 plus 37% of the excess over $15,650
Capital Gains Tax - Short-term gains are taxed as normal income, above. Long-term gains are listed below.
Individual
<$48,350 in gains - 0% tax
$48,350 - $533,400 - 15% tax
$533,400 and up - 20% tax
Married, Filing Jointly
<$96,700 in gains - 0% tax
$96,700 - $600,050 - 15% tax
$600,050 and up - 20% tax
Estates and Trusts
<$3,250 in gains - 0% tax
$3,250 - $15,900 - 15% tax
$15,900 and up - 20% tax
Estate Tax
Federal: Estates below $13,990,000 are not subject to federal estate tax. Any lifetime gifts (see below) may reduce your estate tax credit. Estates above and beyond the limit are subject to a scaling tax, which is not listed here, maximizing at a 40% tax for estates more than $1 million beyond the limit. There is also an additional $345,800 base tax on top of the 40%.
Maine:
Estates below $7,000,000 are not subject to Maine state estate tax.
$7 Million - $10 Million: 8% tax
$10 Million - $13 Million: 10% tax, plus $240,000 base tax
$13 Million and up: 12% Tax, plus $540,000 base tax.
Gift Tax
The Federal annual exclusion amount has increased to $19,000, per individual recipient. Gifts beyond the annual exclusion are attributed to your federal estate tax credit amount and deducted from your lifetime total. Tax is only levied if you exceed your lifetime total.
Probate
There are certain thresholds that get adjusted each year, which may be relevant in a probate case filed for any decendents passing away in 2025. The numbers listed in the statutes do not reflect current values. These numbers account for adjustments in cost of living. For more information and for the source of these figures, please see the Maine Probate website.
§ 2-102, intestate share of surviving spouse:
a. § 2-102(2): $383,900 (increased from the statutory base figure of $300,000)
b. § 2-102(3): $127,900 (increased from the statutory base figure of $100,000)
§ 2-402, homestead allowance: $28,700 (increased from the statutory base figure of $22,500)
§ 2-403, exempt property: $19,100 (increased from the statutory base figure of $15,000)
§ 2-405, family allowance: $34,500 (increased from the statutory base figure of $27,000)
§ 3-1201, value of estate collectible by affidavit, also known as a “Small Estate”: $51,100 (increased from the statutory base figure of $40,000)
MaineCare Long Term Care (Medicaid)
The MaineCare LTC numbers give us insight as to what qualifications are required in order to apply for, and receive benefits from the State of Maine to help pay for long term care services, such as nursing homes. For more information and for the source of these figures, please see the MaineCare Eligibility Manual. and Maine DHHS.
Asset Qualification Limits
Individual Resource Limit: $10,000 - The amount of assets allowed in the name of an individual seeking coverage.
Married Couple Resource Limit: $15,000 - The collective amount of assets allowed in the names of a married couple, where both are seeking coverage.
Well-Spouse Resource Limit: $157,920 - The amount of assets allowed in the name of an individual who is not seeking coverage, but their spouse is seeking coverage.
Primary Residence: <$750,000 - The primary residence is not a counted asset, so long as the value is lower than this limit.
Mortuary Trust: $18,540 - This amount can be held in a mortuary trust to pre-pay funeral costs.
Funeral Account: $1,500 - This amount can be held in the name of an individual if earmarked for burial costs.
Life Insurance Surrender Value: $1,500 - The cumulative value of all lifetime cash surrender values of life insurance policies held in the name of an individual seeking coverage.
One Vehicle: No value limit.
Income Qualification
Please note that there is no hard income limitation for MaineCare Long Term Care services. However, any income earned by the individual seeking coverage will be lost, as it will instead be applied to their long term care services first.
The well-spouse has no limit on income received by them alone.
Minimum Monthly Needs Allowance: $2,555 - $3,948 - The amount of monthly income an individual not seeking coverage can retain from a spouse who is seeking coverage.
Shelter Allowance: $766.50 - Additional income that can be kept by the well-spouse if there is a demonstrated need for housing costs.
Utility Allowance: $1,047 - Additional income that can be kept by the well-spouse if there is a demonstrated need for utilities.
For more information, or if you would like to have a consultation with an attorney to discuss any of these numbers or their related topics, schedule an appointment today.
