By: Attorney Erin L. Nunes, Partner,
Surprenant & Beneski, P.C.
The Treasury and the IRS have recently released updated figures for various provisions of the Internal Revenue Code (IRC) for the year 2024. These updates have important implications for individuals and families engaged in estate planning.
Key Figures for Estate Planning in 2024
- Increased Estate Tax Basic Exclusion Amount: The estate tax basic exclusion amount for 2024 will be $13,610,000. This means that estates valued at or below this amount will not owe any federal estate tax.
- Increased Annual Exclusion for Gifts: The annual exclusion for gifts in 2024 will be $18,000 per year per recipient. This means that individuals can gift up to $18,000 to each recipient per year without incurring any gift tax liability, or having to file a gift tax return.
Estate Planning Strategies
In light of these changes, individuals and families should review their estate plans to ensure they are taking advantage of the latest tax benefits. Some strategies to consider include:
- Maximizing Gifts: Utilize the increased annual exclusion for gifts to make tax-free gifts to family members and loved ones. This can help reduce the size of your taxable estate and potentially eliminate or minimize estate tax liability.
- Reviewing Estate Planning Documents: Review your estate planning documents, such as your will and trusts, to ensure they are up to date and reflect your current wishes and circumstances.
Consulting with an Estate Planning Attorney
Estate planning can be complex, and it is important to consult with an experienced estate planning attorney to discuss your specific situation and develop a plan that meets your individual needs and goals. An attorney can help you understand the latest tax laws and guide you through the process of implementing your estate planning strategies.
Additional Considerations
Estate planning involves more than just tax considerations. It also encompasses important decisions regarding asset distribution, guardianship of minor children, and end-of-life care. Working with an experienced estate planning attorney can ensure that your plan addresses all of these important aspects.
Conclusion
The updated IRC provisions for 2024 present opportunities for individuals and families to optimize their estate planning strategies. By maximizing gifting opportunities, reviewing existing estate planning documents, and consulting with an experienced estate planning attorney, you can help ensure that your assets are distributed according to your wishes and that your loved ones are protected in the future.
©Surprenant & Beneski, P.C. 35 Arnold Street, New Bedford, MA 02740, 336 South Street, Hyannis MA 02601 and 45 Bristol Drive, Easton MA 02375. This article is for illustration purposes only. This handout does not constitute legal advice. There is no attorney/client relationship created with Surprenant & Beneski, P.C. by this article. DO NOT make decisions based upon information in this handout. Every family is unique and legal advice can only be given after an individual consultation with an elder law attorney. Any decisions made without proper legal advice may cause significant legal and financial problems