Happy New Year – 2020!

Happy New Year!

Here’s what the new year brings for estate and gifting taxes. The 2020 tax changes are:

  • The Estate and Gift tax exemption rate is increased (adjusted for inflation) to $11.58 million per individual in 2020.  This is an increase from $11.4 Million per individual in 2019.
  • Planning together, in 2020, married couples can transfer a total of $23.16 Million in inheritance or gifts without gift or estate tax (subject to prior use of the credit).
  • The annual gift exclusion amount is unchanged from 2019.  It remains $15,000.

Remember, the tax law that ushered in these increased Federal Estate Tax exemption amounts expires at the end of 2025.  Talk with your accountant or attorney to see if you could benefit from taking steps before 2026 to utilize the tax exemption.

IRS 2015 Gift and Estate Tax Exemption Amounts

The IRS announced the 2015 Gift and Estate Tax Exemption Amounts, along with other tax changes, here.  For persons dying in 2015, the Federal Estate Tax exemption amount has increased to to $5,430,000, up from the 2014 exclusion amount of $5,340,000.  This means that, collectively,  in 2015 a married couple can exclude $10,860,000 from Federal Estate Tax.  The gift tax annual exclusion amount remains $14,000 in 2015.  This means that in 2015, as in 2014, you can transfer up to $14,000 per individual without the necessity of filing a Gift Tax Return.