Unified Credit

Unified Credit, also known as the unified estate and gift tax credit, is a tax provision in the United States that allows individuals to transfer a certain amount of assets without incurring federal estate or gift taxes. Essentially, it combines the exemptions for gifts made during a person's lifetime and the value of an estate upon death. As of 2023, individuals can transfer up to $12.92 million tax-free. This credit encourages wealth transfer by minimizing tax burdens, allowing individuals to pass on more of their assets to heirs.