Updated Estate and Gift Tax Values for 2024

Updated Estate and Gift Tax Values for 2024

Effective January 1, 2024, the applicable values for estate and gift tax purposes increased in accordance with inflation.

Federal Lifetime Estate and Gift Tax Exemption

The federal lifetime estate and gift tax exemption is now $13.61 million. Married couples may combine this amount for a total of $27.22 million. For estates where the values owned separately by each spouse are unbalanced, or skewed more heavily toward one spouse, it is recommended that married couples intentionally prepare their estate plans with appropriate tax opportunities.

New York State Estate Tax Exemption

The New York State exemption has increased to $6.94 million. Unlike the Federal estate tax laws, New York State does not allow spouses to combine their exemptions. In addition, New York State has a three-year lookback for gifts made by a decedent. This will result in any gifts being added to a decedent’s taxable estate if he or she dies less than three years after making the gift.

Federal Annual Gift Tax Exclusion

The Federal annual gift tax exclusion has increased to $18,000 per donee, for a total of $36,000. As was allowed in the past, spouses who decide to split gifts may double the annual gift to a donee. Any excess gift will reduce the donor’s lifetime exemption.

Changes on the Horizon in 2026 to Rollback Federal Exemption

These rates are at historic highs. However, the Federal exemption will sunset on December 31, 2025, to a level of $5 million, indexed for inflation, which is expected to be approximately $7 million.

Contact Us for Assistance

If your estate is nearing any of these values within the next two years and would like help with estate tax planning, we encourage you to contact our office please contact our office at 212-328-9568 or via email at assistant@abelajlaw.com.