The IRS has released the new estate and gift tax exclusion amounts for 2023 in Revenue Procedure 2022-38. The lifetime estate and gift tax exemption, the amount that an individual can give in his or her lifetime or on death now totals $12,920,000. A married couple may now leave $25,840,000 in value without incurring any estate tax. The annual gift tax exclusion, the amount a donor may give to each donee, is now $17,000, meaning that a married couple may make $68,000 in gifts annually to a child and the child’s spouse without having to file a gift tax return and use any of their $12,920,000 lifetime exemptions.
If you have any questions about these developments, please contact Michael Shaff.