Increased Exemptions Provide Estate Planning Opportunities

The current Federal estate, gift and generation-skipping transfer (GST) tax exemption amounts are projected to increase in 2015. The projected adjustment, compared to 2012, 2013 and 2014, is as follows:

	2012	2013	2014	2015
Unified estate, gift and GST tax exemption	$5,120,000	$5,250,000	$5,340,000	$5,430,000

The increased exemptions allow individuals to shelter greater amounts from Federal estate, gift and GST taxes, now imposed at 40%. For example, in 2015, a married couple would be able to transfer a total of $10,860,000 free of these Federal taxes, either during lifetime or at death. Even a married couple who has already utilized the full 2012 exemptions will have an additional $620,000 of exemption ($310,000 each) available for planning in 2015. ​Annual gift tax exclusions are available in addition to the exemptions, so that each year an individual may make gifts of $14,000 (or $28,000 for gifts by a married couple) to an unlimited number of recipients - - without using up any of the individual's lifetime exemption. The annual exclusion amount is expected to remain at $14,000 for 2015.