IRS Announces 2022 Inflation Adjusted Amounts For Transfer Taxes

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The IRS recently confirmed that, for 2022, the aggregate amount that can be given away without being subject to the gift or estate tax will increase to $12.06 million per individual. Thus, as of 2022, a married couple together can give away $24.12 million cumulatively without transfer tax. The amount of each individual’s generation-skipping transfer tax exemption will also increase to $12.06 million in 2022.

The annual exclusion, which had been $15,000 per donor per donee per year since 2018, will also be increasing to $16,000 per donor per donee per year in 2022. There are no limitations on the number of donees to whom gifts may be made each year. Thus, for example, a married couple together can give away a total of $32,000 to each of their children and grandchildren beginning next year.

Separately, no action has yet been taken on the Build Back Better Act that is now pending in the U.S. Senate.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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