The Internal Revenue Service has published the 2024 Estate and Gift Exemption Amounts. The Unified Exclusion Amount is $13,610,000 and the Annual Gift Exemption Amount is $18,000.
In addition to the annual gift exemption, payments made directly to medical providers or educational institutions are considered non-reportable. Married couples will be able to gift up to $36,000 per year per recipient without causing a reduction of their combined federal estate and gift tax exclusion of $27.22 million.
You can also front-load a College Savings Plan (529) with $90,000, which is considered a gift that requires tax reporting, with an election that can be spread over 5 years to avoid any gift tax.
The larger Unified Exclusion Amount is subject to sunset on December 31, 2025, reverting to $5 million indexed for inflation (expected to be between $6.5 – $7.0 million). It is advisable to consider making larger gifts prior to the sunset expiration date. Any gift over $18,000 requires tax reporting, but no gift tax is incurred until you reach the unified exclusion amount (currently $13,610,000).
Furthermore, the annual amount that one person may give to a spouse who is not a U.S. citizen will increase to $185,000 in 2024.
View the summarized table below:
Due to legislative uncertainty surrounding the exemption, if you are interested in using your higher exemption now, it is encouraged to discuss various planning techniques and options that may suit your needs. We have a combined 90 years of experience, please contact our team of Estate & Gift, Trust and Probate specialists.
Note: Any changes to your estate plan must be drafted by your attorney.
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About KROST’s Estate and Gift, Trust, and Probate Services
Our estate planning team assists with the transition of family wealth and estate succession. Our team of experts has over 90 years of combined experience working with family-owned and privately held companies, as well as high-net-worth individuals. Our primary goal is to assist individuals and their attorneys to effectively transfer wealth while minimizing unnecessary estate, gift, and generation-skipping taxes. In addition, we can coordinate all of your Trust, probate, and estate planning needs to ensure a smooth transition while minimizing emotional, tax, and administrative burdens.
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About the Experts
Richard Umanoff, CPA, MBA, Principal
Tax, Estate & Gift, Trust and Probate
Richard Umanoff is an Estate & Gift, Trust and Probate Principal at KROST. Richard’s career spans over 45 years, with a concentration in taxation. His primary emphasis is estate and trust tax compliance, planning, estate administration, and probate court accounting. Richard currently serves in the role of trustee for numerous clients. » Full Bio
Douglas A. Venturelli, Esq., Principal
Tax, Estate & Gift, Trust and Probate, Sports & Entertainment
Douglas A. Venturelli is an Estate & Gift, Trust and Probate Principal at KROST. He has over 45 years of experience in tax, estate, and business services. His main focus is federal estate and gift taxes. Doug consults with clients in the entertainment, legal, real estate, and medical industries. » Full Bio
So Sum Lee, CPA, Principal
Tax, Real Estate, Hospitality, Estate & Gift, Trust and Probate
So Sum Lee is a Tax Principal at KROST. So Sum has over 25 years of experience in public accounting and has a wide range of experience in Taxation, as well as servicing high-net-worth clients. So Sum’s area of expertise includes industries such as wholesale, real estate investments, and restaurants. » Full Bio
Kimberly Hoang, CPA, Senior Manager
Tax, Estate & Trust, Gift and Probate
Kimberly Hoang is a Senior Manager in the tax department at KROST. She has been in the public accounting profession for over four years. Her areas of focus include tax planning and compliance for small to medium-sized businesses – sole proprietorships, partnerships, corporations, and high-net-worth individuals. » Full Bio