IRS Releases 2024 Inflation-Adjusted Numbers
A silver lining to our current high inflation environment is the IRS’s just-released inflation-adjusted numbers for 2024. Below are some notable highlights affecting various provisions in the Internal Revenue Code applicable for the 2024 tax year:
- The lifetime gift and estate tax exclusion amounts have 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 37% top marginal tax rate will apply to individual income above $609,350 and married couples’ income above $731,200.
High inflation and recession fears present an opportunity for estate planning. The sizeable $690,000 increase in the lifetime gift tax exclusion amount, combined with current depressed asset values, allows you to shift more assets to lower generations, either to newly created irrevocable trusts or as “top-up” gifts to existing trusts. Please get in touch with us if you would like to discuss your estate planning.