The IRS has issued inflation adjustments for certain sections of the Internal Revenue Code. Of interest to our estate planning clients, the federal estate exemption amount for decedents who die in 2022 has been increased to $12.06 million per individual. Married couples, with proper estate planning, can exempt up to twice that amount, $24.12 million. This, of course, requires careful consideration of many factors.
The annual exclusion amount for gifts has also been raised from $15,000 per recipient to $16,000 (last increased in 2018). Remember that you can take advantage of valuation appraisals by gifting on December 31, 2021, and then also on January 1, 2022.
Note that inflation-adjusted amounts above may not apply if the estate and gift tax laws are changed by Congress. We expect additional guidance to be issued if amendments to the Internal Revenue Code are passed that affect the estate and gift exemption and exclusion amounts.
If an estate plan review is on your list of New Year’s resolutions, especially in light of these changes, then contact our office at (248) 477-6300 or email@example.com. Let one of our experienced estate planning attorneys ensure that your plan is still working for you.