Estate Planning: A Couple's Exclusion: $26 Million -- January 8, 2023

The other day, a post on retirement planning when spouse dies.

Today, the federal "death tax" exclusion.

• IRS bumps up the exclusion:
• $12.92 million
• in the small print: that's for an individual
• for a couple: almost $26 million
• annual tax-free gift (per recipient): $17,000 (up from $16,000) 
• link here.

But there's more, link here. Archived.

The Bloomberg article began: 

On the Chinese lunar calendar, 2021 was the Year of the Ox, but for many in the estate planning world, it was the “Year of the Exclusion.”

Due to concerns that Congress might reduce the gift and estate tax exclusion, perhaps retroactively, from $11.7 million to something much lower, estate planners encouraged their wealthiest clients to make large gifts in 2021, and many followed that advice.

As the year evolved, Congress withdrew proposals to reduce the exclusion, and some clients who were on the fence held off on making big gifts in 2021.

Today, it appears that the exclusion amount—now a lofty, inflation-indexed $12.06 million—may remain intact until 2026, when it is scheduled to be halved.

Seriously, did anyone really believe that Congress would cut the "death tax" exclusion?

LOL.

With Pelosi in charge? I can't believe folks fall for this stuff.  

And seriously, does anyone really believe Congress will cut the exclusion in half in 2026? LOL. 

If it is cut, the cut will be inconsequential.