For those taxpayers who plan to reduce their estates by giving annual gifts during their lifetimes, the IRS recently announced that they will be able to increase the donation from $15,000 to $16,000 this year (per taxpayer, per donor). With a federal estate tax of 40% for 2022, taxpayers with estates in excess of the available exemption may want to consider increasing annual gifts to ultimately reduce the tax liability of their estates.
To read more, see Revenue Procedure 2021-45.43.
