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.