Estate Tax Exemption Raised in 2014

Beginning next year, donors who have maxed out on their tax-free transfers to their families can give a bit more.  As of January 1st, 2014, it is estimated and calculated that the estate tax exemption amount will increase by $90,000 (per person or $180,000 per couple).  So for those dying in 2014, the total exclusion amount will be $5,340,000 per person (up from $5.25M in 2013).  That means a husand and wife will have a combined exemption amount of $10.68M.  The increase is due to the fact that the exemption amounts are now pegged to infation. 

Unfortunately though, the annual gift tax exclusion amount will remain at $14,000.