It just keeps getting better for wealthy individuals! The Internal Revenue Service recently announced the inflation-adjusted estate and gift tax exclusion amount for 2020. For gifts made and estates of decedents dying in 2020, the exclusion amount will be $11,580,000 per person – up from $11,400,000 in 2019. The generation-skipping transfer (GST) tax exemption will also increase to $11,580,000 per person – again up from $11,400,000 in 2019.
There will be no change in the gift tax annual exclusion for 2020, that amount remains at $15,000. The annual exclusion for gifts to noncitizen spouses will be $157,000 in 2020 – up from $155,000 in 2019.