Staying up-to-date with tax system changes is fundamental for lawyers, particularly for those working in estate planning and private client law. A notable recent change to stay aware of is the increase in the federal estate and gift tax exemption beginning in 2024.
The combined amount a person can give away to beneficiaries other than their spouse or charities, during their lifetime and at death without paying estate or gift tax, is set to increase from $12.92 million to $13.61 million per person as of January 1, 2024. This regulation change indicates an increase of $690,000 per person, which means that married couples now have a combined exemption of $27.220 million. This information was detailed in an article by Rivkin Radler LLP.
It is essential for legal professionals in corporate settings and law firms alike to closely follow these types of changes to ensure appropriate advising for clients and to navigate the potential impacts of these adjustments in estate and gift tax exemption amounts.