Health & Fitness
IRS Announces Estate, Gift, and Generation-Skipping Transfer Tax Exemptions for 2014
By Donald W. Paule of Paule, Camazine & Blumenthal, P.C.
In Rev. Proc. 2013-35, the IRS has announced the estate, gift and generation-skipping (GST) tax exemptions for 2014. In 2011, estate, gift and GST tax exemptions were set at $5,000,000 per person, adjusted annually for inflation. For 2014, the exemption (with that adjustment for inflation) is $5,340,000 per person. This means that a couple can now transfer up to $10,680,000 in assets with no estate, gift or GST tax.
For 2014, the first $14,000 of gifts to any person (other than gifts of future interests in property) are not included in determining the total amount of taxable gifts. This is referred to as the “Annual Exclusion for Gifts.” This means that an individual can give up to $14,000 per person, per year, free of estate, gift and GST tax. This is in addition to the lifetime $5,340,000 estate, gift, and GST tax exemption.