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There is at least one good piece of news about inflation…the annual increase in estate, gift and generation-skipping transfer tax exemption!  These exemptions are like a force field protecting your wealth from the tax man’s greedy grasp!  You can give up to these exemption amounts to anyone before paying any federal transfer taxes.  But remember, you can always give an unlimited amount to your US citizen spouse tax-free.

 The 2024 exemption amounts went up to $13.61 million in 2024, up from $12.92 million in 2023.  The annual gift tax exclusion, which is the maximum amount that can be given before using any gift tax exemption, will be $18,000 in 2024, up from $17,000 in 2023.

 Don’t forget that these exemptions are set to unravel in 2026, like the grand finale of a fireworks show.  But instead of colorful bursts in the sky, we’ve got tax laws exploding in the financial stratosphere!

 Uncle Sam, in his infinite wisdom, decided to play the ultimate fiscal game.  Back in 2017, they passed a tax overhaul that promised tax breaks and goodies for all.  But, and here’s the kicker, those perks weren’t built to last.  Fast forward to 2026, and it’s time for the bill to come due.

 The government needs to fill its coffers, and what better way than to tap into the wealth of the dearly departed?  The government plans to shrink the estate tax exemption like an ice cube on a Florida beach in August.  In 2026 the estate, gift and generation-skipping transfer tax exemption is going to get cut in half exposing more estates to the clutches of taxation.  It’s like a game of financial limbo, and the bar will be going lower.

 So there you have it, ladies and gentlemen.  The estate, gift and generation-skipping transfer tax exemptions are like Cinderella’s carriage turning back into a pumpkin, and in 2026 the ball is over for those fat exemptions.  The taxman cometh, and your estate might be in for a royal reckoning.