IRS Increases Annual Exclusion

The IRS has recently released the numbers for applicable exclusions for the federal estate tax and the annual exclusion amount for gift taxes.  The federal estate tax exemption amount will increase to $5,450,000 as of January 1, 2016.  The annual exclusion amount for gift taxes will remain $14,000 per recipient for the 2016 calendar year.  There is also a new law that requires the filer of federal estate tax returns to provide a statement of basis to the IRS and beneficiaries, which was set to apply as of August 1, 2015, but has been deferred pending IRS finalization of the procedure.  As expected, there has not yet been any movement with respect to the New Jersey State Estate Tax filing threshold, which remains $675,000.  If you are concerned that any of these items may have an impact on your estate plan, or otherwise would like to discuss them, please contact me at srankin@summitlawyers.net  at your convenience.