January 2016

Federal:
Federal estate and gift tax exemption:
The federal estate tax exemption increased to $5,450,000 in 2016 (up from $5,430,000 in 2015). 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 gift and estate tax rate remains unchanged at 40%.

Generation-skipping transfer (GST) tax exemption:
The exemption from GST tax also increased to $5,450,000 in 2016 (up from $5,430,000 in 2015).

Annual exclusion for gifts to non-spouses:
The annual exclusion for gifts made in 2016 to non-spouses remains at $14,000 per donee.

Annual exclusion for gifts to non-citizen spouses:
The annual exclusion for gifts made in 2016 to non-citizen spouses increased to $148,000 (up from $147,000 in 2015).

Massachusetts:
Massachusetts estate tax exemption:
The Massachusetts estate tax exemption remains unchanged at $1,000,000 and the top Massachusetts estate tax rate remains unchanged at 16%.

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