2015 Federal Estate, GST and Gift Tax Update

January 2015

Federal estate tax exemption:
The federal estate tax exemption increased to $5,430,000 in 2015 (up from $5,340,000 in 2014). This means that individuals can make gifts during life or transfers at death of up to this new higher limit and owe no federal estate tax. The top federal estate tax rate remains unchanged at 40% (same as 2014).
Generation-skipping transfer (GST) tax exemption:
The exemption from GST tax also increased to $5,430,000 in 2015 (up from $5,340,000 for transfers in 2014).
Massachusetts estate tax exemption:
The Massachusetts estate tax exemption remains unchanged at $1,000,000.
Annual exclusion for gifts to non-citizen spouses:
The annual exclusion for gifts made in 2015 to non-citizen spouses increased to $147,000 (up from $145,000 in 2014).
Annual exclusion for gifts to non-spouses:
The annual exclusion for gifts made in 2015 to non-spouses remains at $14,000 (same as 2014).

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