Internal Revenue Service Releases 2024 Lifetime Exemption and Annual Gift Exclusion Amounts.
On November 9, 2023, the IRS issued Revenue Procedure 2023-34, providing the annual inflation adjustments for tax provisions to be used by individual taxpayers on their 2024 returns. The adjustments include the following:
For 2024, the estate, gift, and generation-skipping transfer tax exemption amount is $13,610,000, an increase from $12,920,000 for transfers in 2023.
The annual exclusion for gifts is $18,000 for calendar year 2024, an increase from $17,000 for 2023.
For 2024, the first $185,000 of gifts to a spouse who is not a citizen of the United States (other than gifts of future interests in property) are not included in the total amount of taxable gifts made during that year, an increase from $175,000 for 2023.
What does this mean for will and trust? Is your estate plan still effective? How does asset protection and creditor protection factor in? Do you need to update your estate plan?
Call us for a free consultation. At Yu & Yu Law our estate planning attorneys can help answer your questions in all aspects of estate planning including asset protection, elder law, and wills and trusts.
