Happy New Year – 2024 Brings in Increased Inflation Adjusted Numbers for Estate Planning Purposes

Certain key provisions of the Internal Revenue Code affecting estate planning are indexed each year for inflation.  The new year brings in the following increases and estate planning opportunities for 2024.

• The lifetime gift and estate tax exclusion amounts have been increased from $12,920,000 to $13,610,000.
• The GST exemption amount has also been increased from $12,920,000 to $13,610,000.
• The gift tax annual exclusion amount has been increased from $17,000 to $18,000.
• The gift tax annual exclusion amount for a noncitizen spouse has been increased from $175,000 to $185,000.

Please note that that under the Tax Cuts and Jobs Act, which went into effect on January 1, 2018, the exemption amounts are scheduled to be reduced on January 1, 2026.

Please get in touch with us if you would like to discuss how these changes affect your estate planning.