By Jason T. Johns

The IRS raised the estate tax exclusion amount from $5.34 million for decedents dying in 2014 to $5.43 million for decedents dying in 2015.  That also means the lifetime gift tax exclusion amount for 2015 is likewise $5.43 million.  However, the annual gift tax exclusion amount remains $14,000 for 2015.

The American Taxpayer Relief Act of 2012 tied the re-unified estate and gift tax exclusion amount to inflation.  So, each year, the IRS adjusts the exclusion amount based on inflation.  The IRS recently released the 2015 amounts in Revenue Procedure 2014-61.

This means that if you gave away $5 million in 2012, before the American Taxpayer Relief Act was signed, in 2015, you will be able to gift an additional $430,000 (or $860,000 for a married couple) without paying any gift tax.  This lifetime gift tax exclusion amount is in addition to the annual gift tax exclusion amount.

In 2015, you can continue to gift up to $14,000 each (or $28,000 for a married couple) to as many people as you want, provided they have a present right to enjoy the gift.

If you are interested in making gifts in 2015, please contact us.  We would be happy to help you optimize those gifts.