As we head into the last quarter of the year, many people are thinking about making gifts and transfers to their family members and loved ones. It is important to start planning now based on the estimated decreases that are coming.
Secure your family's financial future by taking immediate action to update your estate plan, as the anticipated 50% decrease in the federal estate and gift tax exemption underscores the urgency of ensuring your assets are protected and distributed according to your wishes.
What You Should Do Now
Be sure to make your annual exclusion gifts before December 31, 2023, if you have not already done so.
2024 Exemption Amount Increasing
The gift and estate tax exemptions will increase to $13.61 Million, or $27.2 Million for a married couple in 2024. This means that, beginning in 2024, you will be able to transfer $13.61 Million to beneficiaries during your lifetime and at death without incurring gift or estate tax.
2024 Annual Exclusion Amount Increasing
In 2024, you will be able to make tax-free gifts up to $18,000, or $36,000 for a married couple splitting gifts to an unlimited number of recipients.
Unless Congress takes additional measures, the existing gift, estate, and GST exemptions are set to undergo a 50% reduction at the beginning of 2026. If you hold assets that you believe are presently undervalued but possess potential for recovery, you may want to contemplate gifting them to family members or trusts. This can serve to transfer the asset's value along with its future income and appreciation from your estate in the years to come.
Contact Kelleher + Holland, LLC Today!
Contact Kelleher + Holland, LLC to schedule a free consultation today to see how one of our estate planning attorneys can help you maximize your estate and make sure that your beneficiaries are well protected.
