2023: A Very Big Year For Estate Planning?

— October 19th, 2022 —
Published in Personal Finance
on cnbc.com
Written by Kate Dore

IRS bumps up estate-tax exclusion to $12.92 million for 2023. Here’s what that means for wealthy Americans:

Starting in 2023, individuals can transfer up to $12.92 million to heirs, during life or at death, without triggering a federal estate-tax bill, up from $12.06 million in 2022. There’s also a higher annual limit on tax-free gifts in 2023, rising to $17,000 from $16,000.

Whether the estate-tax exclusion is $12.06 million or $12.92 million, it won’t likely make a ‘material difference’. But certainly, every bit helps, so why not take advantage of it? We’re talking about ultra-wealthy individuals here. These families won’t have a significant chunk of their wealth hurt by ‘the whims of Congress’. Regardless of what legislation happens, 2023 is shaping up to be a ‘very big year for estate planning’.

Adam Brewer, Tax Attorney, AB Tax Law

The estate-tax exclusion has roughly doubled since Republicans’ signature tax overhaul in 2017. Without further action from Congress, the provision will sunset after 2025, leaving a limited window to leverage the higher limits.

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