The Internal Revenue Service (IRS) has recently announced that the estate and gift tax exemption for the year 2016 will be $5.45 million, an increase from $5.43 million in 2015. “A married couple will be able to shield $10.9 million from federal estate and gift taxes.” The Federal gift and estate tax exemptions are indexed to inflation. The exemption for married couples is $10.9 million, but it is important to understand the complex rules surrounding this exemption. This article discusses some of the other important policies and regulations that tax payers need to be aware of when filing in 2016. Clients should speak with a competent tax attorney to get a better understanding on how Federal Estate and Gift taxes will impact them.
See Ashlea Ebeling, IRS Announces 2016 Estate And Gift Tax Limits: The $10.9 Million Tax Break, Forbes, October 22, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
