LIBRA PARTNER
2022 Numbers to Know
Recently, the IRS announced inflation-adjusted figures for two important items in 2022: the Federal Estate & Gift Tax Exemption and the Annual Gift Tax Exclusion. These recalculations are completely separate from any potential legislative input from Washington, so – barring any new developments in Congress – these are the numbers we will be working with in the coming year.
- The Federal Estate and Gift Tax Exemption will rise from $11.7 million per person to $12.06 million, or $24.12 million per married couple.
- It is important to remember that, regardless of inflation adjustments such as this, these significant exemption amounts are set to sunset at the end of 2025 into 2026, absent any Congressional intervention before then.
- The Annual Gift Tax Exemption, which has been stagnant at $15,000 since 2018, will rise to $16,000 per person, per year.
- This amount can therefore be used when exploring 529 funding, gifts to Irrevocable Life Insurance Trusts for premiums, and any other strategy that involves annual gifting.
- For the complete IRS release, which includes the above items as well as income tax rate tables and other 2022 updates, see Revenue Procedure 2021-45 at www.irs.gov/pub/irs-drop/rp-21-45.pdf
If you have any questions, please feel free to reach out to our Estate Planning Specialist, Sean Link, at sean.link@ubsnet.com or (412) 201-7950