2024 FEDERAL GIFT AND ESTATE TAX LAW CHANGES
Federal Gift Tax
We are pleased to announce our annual Client Appreciation and Shredding Event! The federal gift tax law has increased by $1,000 to allow taxpayers to gift up to $18,000 per year to any one individual without reporting the gift and without reducing his/her available estate tax exemption. A married couple can now gift up to $36,000 per year to any one individual.
A taxpayer is not limited to the number of individuals they can gift annually. For instance, a taxpayer can make $18,000 annual gifts to one or more individuals without being required to report the gifts. The exemption is tied to inflation but can only increase to the nearest $1,000 annually. On another note, any taxpayer who gives a gift of more than $18,000 to any one person is required to file a gift tax return, Federal Form 709, and the amount in excess reduces the taxpayer’s available federal estate tax exemption at his or her death. Federal Estate Tax
Saturday, June 1, 2024 11:00 AM to 1:00 PM
For example – a married couple with a taxable estate of $28,000,000 passes away in 2024. Each individual taxpayer has an exemption of $13,610,000 or a total of $27,220,000 to preserve, leaving $780,000 subject to federal estate tax at an applicable tax rate of 40%. The estate or beneficiaries would owe $312,000 in federal estate tax. IMPORTANT REMINDER: Under current law, the federal estate tax exemption amount, which is adjusted annually for inflation, will revert back to $5,000,000 (as adjusted for inflation) on January 1, 2026. If you would like to discuss minimizing estate tax liability, please call the law firm to schedule an appointment with an attorney.
NEW LOCATION: SKYWAY CENTER (next to Hiller Aviation Museum) 655 SKYWAY ROAD SAN CARLOS, CA 94070
We are happy to invite you, your family, and Successor Trustee to our annual Client Appreciation and Shredding Event. Please join the law firm and enjoy a delicious treat and complimentary onsite shredding. To register, please call Heather at (650) 463-1550 or email directly at heather@falkbarrot.com. We look forward to seeing you on June 1st! The federal estate tax exemption has increased to $13,610,000 for an individual taxpayer or $27,220,000 for married taxpayers. This allows for an individual taxpayer to pass up to $13,610,000 (less taxable gifts as discussed above) without incurring a federal estate tax liability. Married couples may pass up to $27,220,000 (less taxable gifts as discussed above) without incurring a federal estate tax liability.
650-463-1550 www.FalkBarrot.com 865 Laurel Street, Ste 4 San Carlos, CA 94070
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