The new year has brought notable changes to federal gift, estate and generation-skipping transfer (GST) tax rules. Inflation adjustments for 2024 offer fairly substantial increases to gift and estate tax exemption amounts, along with increases to annual exclusion gifts, which individuals and families should be aware of in order to maximize the potential tax benefits.
The adjustments made to exemptions by the IRS should prompt taxpayers to reassess their estate and gifting plans, focusing on enhanced tax efficiency and more impactful wealth transfer between generations. The federal estate tax and GST tax lifetime exemption amounts have increased by $690,000 for individuals in 2024 (to $13.61 million from $12.92 million in 2023) and $1.38 million for married couples (to $27.22 million in 2024 from $25.84 million in 2023).
