2024 IRS Gift and Estate Tax Changes

2024 IRS Gift and Estate Tax Changes

Greetings from Dallo Law Group! As trusted advisors in tax law, we’re here to help individuals and families manage their wealth and assets. Effective January 1, 2024, IRS announced annual inflation adjustments for gift and estate tax exclusions and exemptions. Understanding how these exclusions and exemptions work is crucial to ensure compliance and optimize tax planning strategies.


Annual Gift Tax Exclusion

The Annual Gift Tax Exclusion is the maximum amount an individual may give to a beneficiary without the need to file a gift tax return and without reducing his Lifetime Gift Tax Exemption. In 2024, individuals can gift up to $18,000 per year, up from the previous limit of $17,000. Married couples have the option to make a split gift election, meaning they would be able to transfer $36,000 per beneficiary. By making annual gifts at or below the annual gift tax exclusion amount, families are able to transfer more of their wealth to their beneficiaries without paying estate and gift taxes. Our mission at Dallo Law Group is to provide peace of mind through a strategic tax plan that includes an annual gifting plan.


Increase in Lifetime Gift Tax Exemption

In addition to the annual exclusion, the IRS has increased the Lifetime Gift Tax Exemption to $13.61 million per person. A married couple could transfer $27.22 million in 2024
without paying gift tax. In addition to the $13.61 million Lifetime Gift Tax Exclusion, individuals are also able to transfer gifts up to $13.61 million to their grandchildren or great-grandchildren. These exemptions enable taxpayers to transfer significant wealth during their lifetime without incurring gift tax liabilities. The lifetime exemption, however, may be reduced if taxpayers made gifts exceeding the annual exclusion amount in previous years. So, it is crucial to work with a trusted tax professional to ensure a planned gift will fulfill the taxpayer’s goals.


Gifts to Non-U.S. Citizen Spouses

For individuals with non-U.S. citizen spouses, the IRS imposes specific limitations on gifting.
However, the exclusion limit for gifts to non-U.S. citizen spouses has increased to $185,000, up from $175,000, providing greater flexibility for cross-border wealth transfer strategies. Understanding these nuances is crucial for international families navigating complex tax regulations, and our team at Dallo Law Group is here to provide expert guidance tailored to your unique circumstances.


Planning for Future IRS Gift and Estate Tax Changes

While the increased exclusion and exemption amounts offer valuable opportunities for tax planning, it’s essential to note that they are set to expire at the end of 2025. As such, proactive planning is key to maximizing the benefits of these adjustments before they are sunset. Our experienced attorneys specialize in crafting personalized tax strategies to optimize your
wealth transfer goals while minimizing tax liabilities. Whether you’re considering lifetime gifts,
estate planning, or navigating international tax implications, Dallo Law Group is here to provide
comprehensive support every step of the way.


Contact an Expert Tax Attorney in San Diego

Navigating the complexities of IRS Gift and Estate Tax regulations requires the expertise of seasoned professionals. At Dallo Law Group, our dedicated team of tax attorneys is committed to providing innovative solutions tailored to your specific needs. From structuring tax-efficient
estate plans to resolving IRS disputes, we’re here to safeguard your financial future and provide
you with peace of mind. Contact us today to schedule a consultation and take control of your tax matters with confidence.