The Internal Revenue Service (IRS) has announced its Inflation Adjustments for the 2024 tax year in Revenue Procedure 2023-34. For estate planning purposes, taxpayers will benefit from:
- A higher estate tax exclusion: The basic exclusion amount for estate tax will rise to $13.61 million for estate holders with dates of death in 2024 (increased from $12.92 in 2023).
- More gifts excluded from gift tax: The annual per donee exclusion for gifts is increased to $18,000 (currently $17,000 for 2023). For gifts to spouses who are not U.S. citizens, the first $185,000 is excluded from gift tax.
For those who have maximized use of the former exclusion, you now have more opportunities to transfer additional wealth gift-tax-free.
