Increases in Estate, Gift, and GST Exemptions and Exclusions for 2024

The IRS released the 2024 inflation-adjusted exemptions and exclusions for estate, gift, and GST tax in Rev. Proc. 2023-34 as follows:

• The estate and gift exemption amount (currently $12.92 million) will increase to $13.61 million for 2024 ($27.22 million per couple). The GST exemption will likewise increase by the same amount.
• The annual gift tax exclusion will increase from the current $17,000 up to $18,000 in 2024.
• The gift tax exclusion amount that can be given annually to a non-citizen spouse is increasing from $175,000 up to $185,000 next year.
• Rev. Proc. 2023-34 also provides that trusts and estates are in the highest tax bracket for ordinary income over $15,200.