Taxes are one of the first things people worry about when they think about passing on what they’ve built. Most families will never owe estate or gift tax. Knowing the rules still helps you plan.
North Dakota has no estate or inheritance tax
North Dakota doesn’t charge its own estate tax or inheritance tax. The only estate tax most North Dakota families need to think about is the federal one.
The federal estate tax in 2026
For 2026, each person can pass on up to $15 million, counting both lifetime gifts and what passes at death, before federal estate tax applies. A married couple can shelter up to $30 million with planning. Congress set this amount in 2025 and tied it to inflation going forward, but tax laws can change, so review your plan every few years.
When one spouse dies, the surviving spouse can often keep the unused part of the first spouse’s exemption. This is called portability. It usually requires filing an estate tax return after the first death, even when no tax is owed, so don’t skip that step.
The annual gift exclusion
In 2026 you can give up to $19,000 to as many people as you like without using any of your lifetime exemption. A married couple can together give $38,000 to each person. Going over that amount doesn’t usually mean you owe tax. It means filing a gift tax return and using part of your lifetime exemption.
Paying someone’s tuition directly to the school, or their medical bills directly to the provider, doesn’t count against the annual exclusion at all.
Why it matters even if you’ll never owe tax
Regular gifts can help children and grandchildren now, when the help matters most, instead of later. Gifts can also be part of passing on a family farm or business gradually. And good records today make things easier for your family later.
We help North Dakota families build estate plans that account for these rules, and we work with your tax advisor where needed. Our estate planning services are provided in North Dakota only. Call us at 703-649-4848.
