2022 US Gift and Estate Tax Exemptions

The US gift and estate tax regime remains unchanged at present. However, Inflation adjustments for certain exclusion and exemption amounts have automatically been applied (as of 1 January 2022):

• The ‘unified’ lifetime gift and estate tax exemption amount (applicable to US citizens and most green card holders) has increased from $11,700,000 to $12,060,000.
• The exemption amount for non-US domiciled individuals remains as is at only $60,000 for their US situs assets.
• The annual exclusion amount for gifts to non-spouses has increased from $15,000 to $16,000 per recipient.
• The annual gift exclusion amount for gifts to non-US spouses has increased from $159,000 to $164,000.

The maximum gift and estate tax rate remains at 40% of the fair market value of the relevant assets.

Please contact our team if you have any questions.