2014 Federal Estate and Gift Tax Exemption and 2014 Gift Tax Annual Exclusion Are Announced

For those who like to think ahead, the new federal estate tax exemption for 2014 and the annual gift tax exclusion for 2014 have been announced by the U.S. government.  The estate and gift tax exemption will  be $5,340,000.00, which is a $90,000.00 increase over the exemption for 2013.  The federal estate and gift tax exemption is the amount that a U.S. citizen or resident can gift during life or at death without the imposition of any federal estate or gift tax.  The gift tax annual exclusion, meaning the amount a donor can gift to a donee without using any of the donor’s lifetime exemption, will remain $14,000.00 in 2014.  It is never too soon to start planning for the new year!