2024 Inflation Adjustments to Gift, Estate and GST (Generation-Skipping Transfer) Tax Exemption Amounts
Monday, January 8, 2024
- The federal lifetime gift, estate and GST tax exemption amount increased from $12,920,000 in 2023 to $13,610,000 in 2024. In January 2026, this amount is set to revert to the pre-2018 amount of $5,000,000, which will be indexed for inflation. Assuming that Congress does not act before then, the exemption is projected to be roughly $7,000,000 based on current inflation rates.
- The federal per donee gift tax annual exclusion amount increased from $17,000 in 2023 to $18,000 in 2024.
- The federal gift tax annual exclusion amount to a non-US citizen spouse increased from $175,000 in 2023 to $185,000 in 2024.
- The New York State estate tax exemption amount increased from $6,580,000 in 2023 to $6,940,000 in 2024.
Qualified Charitable Distributions
Qualified Charitable Distributions are distributions directly from an IRA to a qualified charity that are not included in the IRA owner’s adjusted gross income but can count toward the IRA owner's required minimum distribution (RMD) for the year. The maximum amount that can be distributed as a Qualified Charitable Distribution increased from $100,000 in 2023 to $105,000 in 2024.
Contact
If you would like to discuss this information, please contact a member of our Private Client Services, Estates & Trusts team or your Windels Marx relationship lawyer.