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2017 Gift and Estate Tax Exemptions

Trust, Estate and Family - 17 Jan 2017

Although we face a level of uncertainty as to the future of Gift and Estate Tax under a Trump administration, the Internal Revenue Service (IRS) have released the relevant exemptions for 2017.

The annual Gift Tax exemption remains at $14,000, meaning US Citizens or domiciled individuals can continue to gift up to this amount to as many individuals as they wish without incurring a Gift Tax charge or reporting requirement.

It is possible to increase this amount to $28,000 per donee if the gift is split with a US spouse. However, gift splitting may give rise to a reporting obligation, although there would be no liability exposure.

The annual exemption for gifts to a non-US citizen spouse is $149,000 for 2017.

The lifetime exemption has increased to $5,490,000. For those that have used up their exemption previously this allows for an additional Gift Tax-free amount of $40,000 in addition to the annual exemptions. Use of this additional $40,000 would however give rise to a Gift Tax return filing requirement.

We will continue to monitor the developments relating Gift and Estate tax and will keep our clients updated.

If you would like to discuss your Estate Tax and succession planning position please contact your Frank Hirth advisor.

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Iain Younger

Iain Younger


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