Gift and Estate Tax Exemption Amounts Increase in 2024

The IRS officially announced the inflation adjustments for 2024 for the gift and estate tax exemptions.

The estate and gift tax exemption represents the amount an individual can transfer during life or at death to beneficiaries without paying any estate or gift tax. The generation-skipping transfer tax exemption is the amount that can pass directly or indirectly to grandchildren or more remote descendants without incurring a transfer tax at one or more generations. The current federal estate, gift and generation-skipping transfer tax rate is 40%. The Connecticut rate is 12%.

The federal estate, gift and generation-skipping tax exemption will increase to $13,610,000 for 2024 (up from $12,920,000 in 2023). Connecticut uses the same federal exemptions for the Connecticut estate and gift tax.

The annual gift tax exclusion amount is the amount that a person can give annually to an individual without using any gift tax exemption or incurring a gift tax. For 2024, the annual exclusion for gifts will increase to $18,000 (up from $17,000 in 2023).

Be sure to consult with your tax professional and your estate planning attorney to make the best decisions for your own situation.

Do you have questions?

Count on your experienced team at Ericson, Scalise & Mangan, PC to provide you with sound guidance for your Estate Planning, Elder Law, Real Estate, Probate, Trust & Estate Administration, and other legal needs. For assistance, contact us today at (860) 229-0369, or email us at info@esmlaw.com.