Estimate of Inflation Adjustments for 2024

On January 1 of each year, the estate and gift tax “basic exclusion amount,” currently $12,920,000 per person, is adjusted for inflation. The 2024 inflation adjustment, which will be based on data gathered through August 31 of this year, will be announced this fall. But because the inflation adjustment incorporates data going back to September 2021, it is possible to project the 2024 inflation adjustment now with some precision. The adjustment will be approximately $740,000. The size of the 2025 inflation adjustment will depend on the course of inflation over the next year, but $500,000 is a reasonable guess based on currently available data and the continued inflationary pressures in the American economy. The gift tax annual exclusion will jump to $18,000 in 2024 and […]

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NYS Temporarily Allows Virtual Witnessing of Wills, Health Care Proxies and Powers of Attorney

From the NY State Bar Association Today: Gov. Andrew Cuomo issued a new executive order Tuesday that addresses remote witnessing. The order, among other issues, clarifies the requirements needed to allow the remote signings of such documents as deeds, wills, powers of attorney forms and healthcare proxies. The order states that the law authorizes the use of audio and video technology if the following conditions are met: • The person requesting that his or her signature be witnessed, if not personally known to the witness(es), must present valid photo ID to the witness(es) during the video conference, not merely transmit it prior to or after; • The video conference must allow for direct interaction between the person and the witness(es), and the supervising attorney, if […]

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Fall, 2007: New Starting Point for Updates

Circular 230 Disclosure: Pursuant to recently-enacted U.S. Treasury Department Regulations, we are now required to advise you that, unless otherwise expressly indicated, any federal tax advise contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein. I have started a new blog for hosting my updates, and it seems appropriate, as we are transitioning away from the Bush era -dealing with the reduced chances of actual repeal of our existing unified transfer tax (read Estate, Generation Skipping Transfer, and Gift Tax) regime. As posts will now show, […]

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