Posted on Fri Nov 20, 2015, on Estate Planning
At the end of October, the IRS announced the 2016 estate and gift tax lifetime exemption and annual gift tax exclusion. These amounts are tied to inflation, which has been minimal due to a number of factors—especially the lack of a federal interest rate hike during the first three quarters of 2015.
The estate and gift tax lifetime exemption rose from $5.43 million in 2015 to $5.45 million in 2016. This means married couples can pass on $10.9 million free from federal estate tax. The annual gift exclusion did not increase, and will remain at $14,000 for 2016.