BY CONNOR STEENS
The U.S. Internal Revenue Service (IRS) has announced a notable increase to the lifetime gift and estate tax exemption. The exemption will increase to $12.92 million per individual ($25.84 per couple) for gifts and deaths in 2023. This is up from $12.06 million per individual in 2022. Importantly, this means that a couple who has already maxed out their lifetime gifts can make additional gifts to their trusts of up to $1.72 million in 2023.
Additionally, an increase to the annual gift tax exclusion was announced due to inflation. At $17,000 per recipient in 2023, whereby gifts can be made to, or for the benefit of, an unlimited number of individuals without using the lifetime gift and estate tax exemption. This will be the highest exclusion amount ever
Furthermore, the annual sum that one may give to a spouse who isn’t a U.S. citizen will increase to $175,000 in 2023.
These threshold amounts will come into effect on January 1, 2023. If you are interested in taking advantage of the increased exemptions contact us today.