Adjustments To Federal And State Transfer Tax Exemptions

February 2024

As a reminder, the following adjustments took effect as of January 1, 2024:

• The annual exclusion from gift tax has increased to $18,000 per donee (or $36,000 for a married couple if they elect to “split” gifts).

• The Federal estate and gift tax exemption has increased from $12,920,000 to $13,610,000 for an individual.

• The GST tax exemption has also increased from $12,920,000 to $13,610,000 for an individual.

• The annual exclusion for gifts to a non-citizen spouse has increased from $175,000 to $185,000.

• The New York State estate tax exemption for calendar year 2024 has increased to $6,940,000. Beware of the estate tax “cliff”, which

triggers a New York tax computed without the benefit of any exemption as soon as the amount of the decedent’s taxable estate exceeds 105% of the available exemption.

• New Jersey assesses an inheritance tax (which is a tax on distributions at death), to persons other than the decedent’s spouse, parents, grandparents, descendants and charitable organizations. There is no separate estate tax.

• The Connecticut estate tax exemption amount is equal to the Federal estate tax exemption amount, which for 2024 is $13,610,000 for

an individual. Similar to the Federal tax exemption amount, gifts in excess of the annual exclusion amount will reduce an individual's

Connecticut estate tax exemption.

• Colorado does not have a separate state levied gift or estate tax.

This Advisory is provided as general information only and is not intended and should not be construed as legal advice. No action should be taken solely on the basis of its contents.