Estate Planning Update
January 2024
1. 2024 Annual Gift Tax Exclusion: increased to $18,000 per donor, per donee.
2. 2024 Gift and Estate Tax Exemption: increased to $13,610,000 per donor through 2025, see #6, an increase of $690,000.
3. Marital Deduction for Transfers to U.S. Spouse: remains unlimited.
4. 2023 Generation Skipping Tax Exemption: increased to $13,610,000 per donor through 2025, see #6.
5. Top rate for Federal Estate, Gift and Generation Skipping Taxes: 40%.
6. National Topics:
a. The current Gift and Estate Tax Exemption is doubled to get to the amounts set forth above. It is anyone’s guess whether the doubled amounts will be continued after December, 2025 or allowed to revert back to the inflation adjusted base amounts (approximately half of the above amounts).
b. The Corporate Transparency Act (CTA) is a new federal law which became effective January 1, 2024 and applies to most all closely held businesses. The law requires the reporting of certain entity and beneficial owner information. Failure to comply may result in civil penalties ($500 per day) and criminal penalties (imprisonment for up to 2 years and/or a fine up to $10,000). CTA reporting for existing entities will be delinquent if not completed by December 31, 2024. For more information on the CTA and complying with see The Corporate Transparency Act (CTA) – New Year. New Requirements..
7. Estate Planning Opportunities: While increased interest rates have reduced transactions and slowed down the real estate market, we continue to implement large asset transfers, mostly in trust, for spouses and children to make sure we use the increased estate tax exemptions. GRATs, SLATs and ILITs remain viable tools. Individuals with more than $6,000,000, or couples with more than $12,000,000, who are either over the age of 80 or considering large gifts in the next ten years should consider accelerating these gifts before the exemptions are reduced.
8. Quinn News: We finished 2023 with a firm retreat (see video on Instagram @quinndeangelis or Facebook @deangelislegal) after a busy year upgrading our systems and moving our office to just North of the Kierland Shopping Center, in a building called Kierland One, 16430 N. Scottsdale Road, Suite 170, Scottsdale, Arizona 85254. Phone and email addresses remain the same. We hope to see you there soon.