New Gift and Estate Tax Exemption Levels for 2014

Tuesday, October 8, 2013

Today’s rapidly changing estates and trusts laws have made retirement planning and asset preservation more complicated.  Individuals, families and businesses have to find their way through a series of complex statutes and regulations in order to figure out the best way to transfer assets from generation to generation. 

We are pleased to welcome you to the “Hancock Estabrook Trusts & Estates Law Blog,” which will provide information on new and interesting developments in the law on topics such as construction of wills and trusts, taxes, inheritance rights and more. 

 The most recent news is that on October 31, 2013, the IRS announced new gift and estate tax exemption levels for 2014. 

At the beginning of 2013, the IRS made the new record-high gift and estate tax exemption amounts permanent so that, as of January 1, 2013, a taxable estate of less than $5,250,000 did not create any liability for federal estate tax.  The law also provided for inflation adjustments to the exemption levels.

Because of the 2014 inflation adjustments announced by the IRS on October 31, the exemption amounts for both gift and estate tax purposes will now be $5,340,000 (up from $5,250,000).  The annual gift tax exclusion amount, which was increased in 2013 to $14,000, will remain $14,000 for 2014.

Here is a link to the IRS notice for more detail:  http://www.irs.gov/pub/irs-drop/rp-13-35.pdf

 

 

 

 

 

 

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