Kennedy & Ruhsam Law would like to highlight the federal tax updates in 2023 that shines a light upon estate planning and how the new federal guidelines on the expansion of the portability of gift and estate taxes period may impact your estate planning needs. The power of portability will drastically change in the next three years, as in 2026, there is potential for a significant decrease in the exclusion amount which would create problems and hefty taxes for a second-to-die spouse’s estate.
- The lifetime estate and gift tax exclusion for 2023 increased to $12,920,000 per person ($25,840,000 for married couples).
- The annual gift tax exclusion increased to $17,000 or $34,000 for married couples.
- The highest federal estate tax, gift tax, and GST Tax rate remains at 40%.
- The period for electing portability was extended to five years after a Decedent’s death.
Learn how the updates to the portability of estate and gift tax exemptions may impact you here https://www.jdsupra.com/legalnews/how-changes-to-the-portability-of-the-8620161/