Updated Estate Tax and Gift Tax Rates for 2024 Key Insights

In the year 2024, significant adjustments have been made to estate tax numbers, demanding your
attention, especially if you possess a sizable estate currently subject to taxation or anticipate one
becoming taxable in the future.

Federal Lifetime Unified Estate and Gift Tax Exemption Update

Commencing January 1, 2024, there is a noteworthy increase in the amount of money that can be gifted
without incurring estate tax. The new threshold stands at $13.61 million, and for married couples, this
amount can be effectively doubled.

Annual Gift Tax Exclusion Enhancements

Starting January 1, 2024, the limit for the amount you can gift to any individual, extending to multiple
individuals, has risen to $18,000 from the previous $17,000. For married couples, the potential doubles.
Should your gift exceed $18,000 to a single individual, a gift tax return is required. The excess amount
over $18,000 is then deducted from your lifetime exemption. Importantly, no estate or gift tax is
applicable until your entire lifetime exemption is utilized.

Anticipated Changes in 2026

The substantial increase in the lifetime exemption, a result of the 2017 Tax Cut and Jobs Act, is slated to
undergo modifications in 2026. As of January 1, the exemption is expected to be halved and adjusted for
inflation, settling around $7 million. The continuation or sunset of this law hinges on the political
landscape, specifically, the control of Congress and the White House at that juncture.

No Clawback for Current Gifts

For those contemplating tax-free gifts to mitigate the impact of the anticipated reduction in the lifetime
exemption in 2026, the IRS assures there will be no “clawback.” Making gifts now won’t result in any
losses, providing a strategic approach to navigate the changing estate tax landscape.

Stay informed and make strategic decisions to optimize your estate planning in light of these evolving
tax regulations. Planning ahead can ensure that you maximize your exemptions while staying compliant
with the latest tax laws. Keep an eye on legislative developments to adapt your strategy accordingly.
Our office serves the entire state of Florida so call us at (305) 962-5929 to schedule a consultation to
discuss your Real Estate and Title Insurance needs.