Unified Tax Credit

The Unified Tax Credit is a provision in U.S. tax law that allows individuals to transfer a certain amount of wealth to heirs without incurring federal estate or gift taxes. This credit effectively combines the lifetime gift tax exemption and the estate tax exemption into a single threshold, enabling people to give away a specified amount during their lifetime or pass on their estate after death without tax consequences. As of 2023, this amount is over $12 million per individual, allowing significant wealth to be passed on tax-free.