New 2023 Estate, Gift and GST Exemption Amounts

Yesterday, the IRS released an advanced version of Rev. Proc. 2022-38 providing the annual inflation adjustments for more than 60 tax provisions to be used by individual taxpayers on their 2023 returns (to be filed in 2024.)

These updates are of particular interest to the estate planning field in regard to the following:

• New unified credit against estate tax (impacts the gift and GST exemptions) will increase from $12,060,000 to $12,920,000.
• Change in maximum reduction in valuation of qualified real property under Section 2032A. The new maximum decrease will be $1,310,000.
• Increase in the “2-percent portion” of the estate tax payable under Sections 6166 and 6601. This will be $1,750,000.
• The threshold amount for the maximum rate bracket for trusts and estates will kick in at $14,450.
• The exemption amounts under Section 55 (phaseouts) will be $94,600 for the threshold and $208,200 for the complete phaseout amount.

Special thanks to Jim Roberts, (Glast, Phillips & Murray, PC) for bringing this to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2022/10/new-2023-estate-gift-and-gst-exemption-amounts.html