Estate Planning Update

July 2023

  1. 2023 Annual Gift Tax Exclusion: increased to $17,000 per donor, per donee.
  2. 2023 Gift and Estate Tax Exemption: increased to $12,920,000 per donor through 2025, see #6, an increase of $860,000.
  3. Marital Deduction for Transfers to U.S. Spouse: remains unlimited.
  4. 2023 Generation Skipping Tax Exclusion: increased to $12,920,000 per donor through 2025, see #6.
  5. Top rate for Federal Estate, Gift and Generation Skipping Taxes: 40%.
  6. National Topics: The current Gift and Estate Tax Exemption is doubled to get to the amounts set forth above and the question remains, will the doubling be (a) extended beyond 2025 (b) allowed to expire at the end of 2025 or (c) reduced before then? Last year’s mid-term election showed neither party has complete control over Congress, therefore, significant changes in the estate tax exemptions is unlikely any time soon.
  7. Arizona Topics: There have been few material changes in Arizona estate planning laws. However, Arizona is long overdue for a pullback in residential housing values, which typically occurs about every 10 years. Recent published reports regarding water availability for new subdivisions may impact Arizona’s construction industry negatively but could also keep residential home prices stable relative to the rest of the country. Titling real estate continues to cause problems in estate and trust administration. For more information on titling real estate, including how to protect yourself from fraud, see Residential Real Estate Article. Keep this in mind as you plan your estate.
  8. Estate Planning Opportunities: The next 18 months offer a unique opportunity to transfer wealth. Asset values are falling, the interest rate yield curve is inverted (long term rates are less than short term rates) and the estate tax exemption remains doubled, thus allowing more assets to be transferred at very little cost.  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.
  9. Quinn News: Our office move is complete! The new office is 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 will remain the same. We hope to see you there soon. Lastly, earlier this year changed our hourly rates for new clients and all clients will convert to the new rate schedule September 1, 2023.