Reminder: Maximize the Use of Historically High Estate and Gift Tax Exemptions

High net worth clients should be reminded that time is flying--and the 2017 tax cuts for individual taxpayers are largely set to expire in just two short years, absent Congressional action. The gift, estate and GST exemption is set to increase again, to $13,610,000 per individual for 2024 ($27,220,000 per married couple). Individuals who are interested in transferring wealth to minimize estate taxes in the future should be reminded that they can transfer assets during their lifetime using the currently high exemption amounts. The IRS has already clarified that there will be no "clawback" for individuals who transfer assets now, when exemption levels are high, even if the exemption for their year of death is actually lower than the current amounts. Because the exemption is again increasing for 2024, clients who have already used their exemption amounts completely will actually be able to transfer additional wealth next year (the exemption rises by $690,000 per individual or $1,380,000 per married couple in 2024). For more information on the estate tax, visit Tax Facts Online. : Q 821.