The IRS is already looking forward to 2014, to include the estate and gift tax exemption in Overland Park and elsewhere.
So what will estate and gift planning be like in 2014?
Fortunately, as noted in a recent Forbes article, the number will be a bit more generous.
According to the article, titled “IRS Raises Limit On Tax-Free Lifetime Gifts,” the basic exclusion (or unified exclusion), has been $5.25 million for 2013, but it is set to shimmy up to $5.34 million for 2014.
Remember, this is the amount an individual can transfer to their loved ones without fear of taxation, either in life as a gift free from gift tax or in death as a bequest free from estate tax.
Unfortunately, the basic/unified exclusion increase does not mean an increase to the annual gift exclusion. That is the amount you can gift per year to an individual without affecting the basic/unified exclusion. Currently you can give $14,000 per person per year, and it will be no different in 2014.
Again, with time still remaining on the 2013 clock, there yet time to maximize your gifting before time expires. That noted, check out a companion article titled “The 2013 Limits On Tax-Free Gifts: What You Need To Know”
Remember: “An ounce of prevention is worth a
pound of cure.” When making your financial, tax and estate plans, do not
go it alone. Be sure to engage competent professional counsel.
Remember: “An ounce of prevention is worth a pound of cure.” When making your financial, tax and estate plans, do not go it alone. Be sure to engage competent professional counsel.
For more information about estate planning in Overland Park, KS (and throughout the rest of Kansas and Missouri) and to download free tools to help you organize your estate, visit my estate planning website.
Reference: Forbes (October 31, 2013) “IRS Raises Limit On Tax-Free Lifetime Gifts”
Forbes (November 1, 2013) “The 2013 Limits On Tax-Free Gifts: What You Need To Know”