IRS Recently Announced 2015 Limits for Estate and Gift Tax Exemptions

Posted on Dec 6 2014 3:59PM by Attorney, Jason A. Lee

The IRS recently introduced certain cost of living adjustments to the consolidated federal estate and gift tax exemption.  The new federal estate and gift tax exemption will be $5.43 million dollars in 2015.  This is an increase from the prior exemption of $5.34 million for 2014.  This is therefore an increase of $90,000.00 that can be passed on by gift or in your estate, tax free starting in 2015. 


Unfortunately, the annual tax free gift exclusion amount stays at the same level at a total of $14,000.00.  This is the annual amount of gifts that can be given to an individual without counting toward the lifetime consolidated exemption of $5.43 million for 2015.  As a result, each year you can give up to $14,000.00 to an individual under the annual gift tax exclusion without it counting towards your lifetime exemption amount.


As I have stated before, estate taxes are becoming less relevant due to the “permanent” fix that was provided by the federal government a few years ago.  Additionally, the Tennessee inheritance tax exemption will be $5,000,000.00 in 2015 and it is abolished starting in 2016. 


Follow me on Twitter at @jasonalee for updates from the Tennessee Wills and Estates blog.

TAGS: Tennessee Inheritance Tax, Taxes
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Jason A. Lee is a Member of Burrow Lee, PLLC. Contact Jason at 615-540-1004 or jlee@burrowlee.com for an initial consultation on wills estate planning and probate issues.

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Tennessee Wills and Estates Blog
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Phone: 615-540-1004
E-mail: jlee@burrowlee.com