Estate Exclusion, Gift Limit Rise to $5.43M
The IRS has announced that the basic estate tax exclusion amount for the estates of decedents dying during calendar year 2015 will be $5.43 million, up from $5.34 million for calendar year 2014.
Also, if the executor chooses to use the special use valuation method for qualified real property, the aggregate decrease in the value of the property resulting from the choice cannot exceed $1,100,000 million, up from $1,090,000 for 2014.
The lifetime tax exclusion for gifts rises to $5.43 million, as does the generation-skipping transfer tax exemption. The annual gift tax exclusion remains at $14,000.
For details on many of these and other inflation adjustments to tax benefits, go to: http://www.irs.gov/pub/irs-drop/rp-14-61.pdf
Elder Law Attorney serving Frederick and Montgomery Counties, Maryland