Monthly Archives: November 2013

Estate and Gift Tax Highlights for 2014

Inflation adjustments increase the ability to make tax free transfer as of January 1, 2014.

Estate, Gift & Generation-Skipping Tax Transfers
The exemptions for federal estate, gift and generation-skipping tax (“GST”) transfers are set at $5,000,000, indexed for inflation. Due to the inflation adjustment, the exemption for 2014 transfers (during life and at death) is $5,340,000 (or $10,680,000 per married couple), reduced by any portion of the exemption used in prior years. Taxable transfers beyond the available exemption will still be subject to a 40% tax rate.

New York still sets its estate tax exemption at $1,000,000. However, New York does not have a gift tax, which means lifetime gifts continue to be particularly advantageous for New York residents.

Annual Exclusion

The annual exclusion will remain at $14,000 per donee (or $28,000 per donee for a married couple). However, as of January 1, 2014, the annual exclusion for gifts to non-citizen spouses will be increased to $145,000 (from $143,000 for 2013 gifts).