Gift and Estate Tax Exemption Limits Will Increase for 2024. The year 2024 will bring more reasons to be generous, since the Internal Revenue Service (IRS) has increased the limits for gift and estate tax exemption amounts to their highest amounts ever. It’s good news to start the year with, reports the article “IRS Increases Gift and Estate Tax Exempt Limits—Here’s How Much You Can Give Without Paying” from yahoo! finance.
ANNAUL EXCLUSION FROM GIFT TAXES: As of January 2024, you may give an unlimited number of people up to $18,000 each in a single year without taxes. For married couples starting in 2024, a gift of $36,000 can be made to any number of people, tax-free.
GIFT AND ESTATE TAX EXEMPTIONS INCREASE FOR 2024 – More good news: the IRS announced that the lifetime estate and gift tax exemption will increase to $13.61 million in 2024.
As always, gifts between American spouses are virtually unlimited. In 2024 couples have a combined $27.22 million in estate tax exemptions, and going over this limit is only taxed upon the surviving spouse’s death.
Something else to keep in mind—unless Congress acts, the lifetime estate and gift tax exemption is due to return to the pre-2017 Tax Cuts and Jobs Act level of $5.49 million on December 31, 2025. Your wisest move is to speak with your estate planning attorney about a strategic plan for gift-giving and planning to minimize estate tax liability before the change occurs.
Reference: yahoo! finance (Nov. 14, 2023) “IRS Increases Gift and Estate Tax Exempt Limits—Here’s How Much You Can Give Without Paying”
