October 26, 2022 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.

Connor Steens

Connor joined Southpac in November 2017. As the Marketing Coordinator, Connor develops and maintains Southpac’s marketing strategy, leads market research efforts and coordinates the flow of marketing communications. Connor holds experience designing, marketing and directing successful online retail stores as well as freelance graphic design. He has developed a strong understanding of the trust industry having worked on investment, banking and business relationships in the past and has a keen interest in all aspects of the wealth planning industry. Connor aims to apply these various technical skills to ensure that Southpac’s strategy and brand reflects the premium service that you can expect. When not at work, or studying, Connor is an avid motorcyclist but also enjoys hiking the various trails in the Bay of Plenty region, kickboxing and reading a good book.
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