Currently, every individual who is a resident and citizen of the United States qualifies for an estate tax exemption.

The 2022 estate tax exemption amount is $12.06 million and is indexed for inflation. This means that the first $12.06 million dollars of property a person owns at death are exempt from estate taxes. If a person has made gifts during his lifetime, the exemption at death may be reduced by the amount of the gifts.

Annual Gift Tax Exclusion

A gift tax is a federal tax applied to a person giving anything of value to another person. Gifts made each year at or below the annual exclusion are not taxable gifts. The annual exclusion for 2022 is $16,000; therefore, a person can give $16,000 each year to as many persons as they choose. The gifts are not taxable and do not have to be reported on a gift tax return.

Generation-Skipping Transfer Tax

Generation-skipping transfer tax, also known as a GST, is a separate tax on property that passes to a "skip person". A skip person is two or more levels below the generation of the person who is making the transfer. The GST tax exemption is currently $12.06 million for a U.S. citizen.

  2019 2020 2021 2022
Estate/Gift Tax Exemption $11,400,000 $11,580,000 $11,700,000 $12,060,000
GST Tax Exemption $11,400,000 $11,580,000 $11,700,000 $12,060,000
Annual Gift Tax Exclusion per Donee $15,000 $15,000 $15,000 $16,000
Estate & Gift Tax Maximum Rate 40% 40% 40% 40%
GST Rate 40% 40% 40% 40%
Portability of Unused Exemption Amount Yes Yes Yes Yes

Do You Need The Help Of A Dallas Tax Planning Attorney?

If you believe you may need to speak with an experienced tax planning attorney please contact us online or call our Dallas office directly at 214.559.7202 to schedule a consultation.

Lori Ashmore Peters
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Helping Dallas area families with all of their legal Estate Planning, Probate and Business Planning needs.