The Internal Revenue Service (IRS) releases a list of inflation adjustments annually. The IRS has recently published the inflation adjustments for the 2024 tax year. It is crucial to monitor these updates in order to determine how they can impact you and your family.
Key Figures – Estate and Gift Taxes
Below is a summary of key figures related to Estate and Gift Taxes.
| 2024 | 2023 | |
| Lifetime Estate and Gift Tax Exclusion | $13,610,000 | $12,920,000 |
| Lifetime Generation-Skipping Transfer (GST) Tax Exemption | $13,610,000 | $12,920,000 |
| Gift Tax Annual Exclusion | $18,000 | $17,000 |
| Annual Exclusion for Gifts to Noncitizen Spouses | $185,000 | $175,000 |
Additional items of note for decedents dying in 2024:
- If an Executor elects to use the special valuation method for qualified real property, the decrease in value cannot exceed $1,390,000 ($1,310,000 in 2023).
- The amount used in figuring the 2% portion of estate tax on closely held businesses that is payable in installments under §6166 is $1,850,000 ($1,750,000 in 2023).
These adjustments are accessible on the IRS website in Revenue Procedure 2023-34.
As the 2024 election quickly approaches, the increase in estate and gift tax exclusions may bring new opportunities for your estate and gift tax planning, even for those clients who made significant prior gifts. As always, your Withum tax advisor is available to explain how these increases can assist you to meet your estate planning goals and objectives.
Author: Erin McDonald, CPA | [email protected]
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