TAX EXEMPT GIFTING LIMITS INCREASED

Last year we provided some advice for gifting during your lifetime. See this link https://legacystudiolaw.com/should-you-consider-gifting-money-to-family-or-friends-during-your-lifetime-as-part-of-your-estate-plan/

The numbers have been updated for 2023.  You can now give an individual gift of up to $17,000 a year to as many individuals as you want without having to file a gift tax return.

Additionally, each individual’s lifetime gift exemption has been increased to $12,920,000[1].

That means for most that die in 2023, their estates will be responsible for paying estate tax if the total assets of their estate (probate and non-probate assets), combined with the amount reported on any gift tax returns filed during their lifetime, exceed $12,920,000.  See the link above for a more robust discussion of how this lifetime gift exemption works if you are married.

Happy gifting!

[1] This is the current amount for deaths in 2023.  The law is set to sunset to approx. $6 million (adjusted for inflation) in January of 2026.