IRS recently announced that the federal gift and estate tax exemption will be increased to $13,610,000 as of January 1, 2024 – an increase of $690,000 per transferor over 2023. This means each individual can transfer by lifetime gift and/or at death up to $13,610,000 with no federal estate tax due upon death.  In 2024, a married couple will be able to transfer up to $27,220,000 with proper advance estate planning.  However, this big estate and gift tax exemption is presently scheduled to automatically drop the end of 2025 to $5 million adjusted for inflation.

Taking into account the uncertainty of future legislation and the current “built-in” reduction, this is an important time to meet with your tax planning professional and estate planning attorney to ensure there is flexibility and strategies in your estate plan should a future reduction in the gift and estate tax exemption amount apply to your estate, costing your heirs and beneficiaries. You could be in a “use it or lose it” scenario without proper planning over the next few years.

If you are in Arizona and wish to discuss these potential developments and how they might impact you and your family, please contact our office at 480-922-1010 or info@bivenslaw.com to schedule your complimentary estate planning consultation.

-Stephanie A. Bivens, Esq., CELA