How does adjustment of lifetime gift exclusion affect your balance?

[Taxpuzzle]

For simplicity, let's say this year the lifetime gift exclusion amount is $12M

Some people say the amount will shrink to $6M in 2026.

Let's say you give 12M to a friend this year and use up the lifetime gift exclusion amount.

What happens in 2026 when the amount shrinks to 6M? Do you suddenly have to pay gift tax on $6M because that is how much you exceeded the lifetime gift exclusion by.

If you die before 2026, do you "lock in" the $12M amount?

[xmasbaby0]

Money that you receive as a gift is not taxable income to you, and you do not need to report it on your income tax return.  Money that you gave as a gift to someone else is not deductible for your taxes.

Turbo Tax does not support the gift tax form 709, but here is a link:

https://www.irs.gov/pub/irs-pdf/f709.pdf

https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N

https://www.forbes.com/sites/ashleaebeling/2017/10/19/irs-announces-2018-estate-and-gift-tax-limits-...