Time to Take Advantage of Just-Out 2014 Estate, Gift and GST Tax Exemptions
The IRS’s recent release of 2014 inflation-adjusted estate tax, gift tax and generation-skipping transfer tax exemptions signal a perfect time to put a yearly gifting program into place. Individuals interested in passing on wealth to family members without tax penalty should take advantage of these new exemptions, which are considered permanent.
The exemptions will be as follows:
- The unified estate and gift tax exemption amount is $5.34 million, up from $5.25 million in 2013.
- The gift tax annual exclusion will remain at $14,000.
- The annual exclusion for gifts made to non-citizen spouses is $145,000, up from $143,000 in 2013.
The increased amounts, and their inflationary increases, can be used to make outright gifts to children and grandchildren or leveraged to make gifts of business interests to family members or trusts of family members. They can also be put toward gifts of primary and/or vacation homes to Qualified Personal Residence Trusts.
For additional information on how these exemptions can affect your personal estate planning issues, contact Thomas Boulden, a partner in the Estates Department at Timoney Knox, LLP.
Links of interest:
- Overview of 2014 Estate Tax, Gift Tax & Generation Skipping Transfer Tax Laws
- Exemption From Federal Estate Taxes: 1997 – 2014
- Lifetime Exemption From Federal Gift Taxes: 1997 – 2014
- Exemption From Federal Generation Skipping Transfer Taxes: 1997 – 2014
Sources: Hot off the Press: Estate, Gift and GST Tax Exemptions for 2014, 11/14/2013, by Matthew A. Levitsky
IRS Releases 2014 Estate Tax, Gift Tax, GST Tax Exemptions as Adjusted for Inflation, 11/4/2013, by Julie Garber