Current Developments: November 2023 Review
Recent times have seen a flurry of changes in estate planning, elder law, and business law. The Internal Revenue Service (IRS) has declared the 2024 exemption limits for lifetime and annual gifts, while the Social Security Administration has announced the 2024 cost-of-living adjustments. Moreover, a final rule has been set forth regarding the usage of FinCEN identifiers under the Corporate Transparency Act. To keep you informed of these legal evolutions, we present a comprehensive analysis of their potential impact on your legal practices in estate planning, elder law, and business law.
Estate Planning
Internal Revenue Service Announces 2024 Exemption Figures
Revenue Procedure 2023-34 (Dated: November 9, 2023)
On November 9, 2023, the IRS introduced Revenue Procedure 2023-34. This document outlines the annual inflation adjustments for tax provisions applicable to individual taxpayers for the 2024 returns. Key adjustments include:
| Adjustment | 2023 | 2024 |
|---|---|---|
| Estate, gift, and generation-skipping transfer taxes exemption amount | $12,920,000 | $13,610,000 |
| Annual gift exclusion amount | $17,000 | $18,000 |
| Gifts to non-U.S. citizen spouse (excluding future interest property gifts) | $175,000 | $185,000 |
Key Insights: These adjustments reflect the ongoing inflation trend. The raised basic exclusion amount permits individuals to transfer an additional $690,000 ($1,380,000 for married couples) without incurring transfer tax in 2024 compared to 2023. The raised annual gift exclusion, witnessing its third increase in as many years, signifies ongoing fiscal adjustments. Estate planning lawyers should guide clients to leverage these increased limits, especially considering the impending reduction of the exemption amount post-2025.
Elder Law and Special Needs Law
Social Security Administration’s 2024 Adjustments
The Social Security Administration has announced a 3.2% COLA for 2024, applicable to Social Security and SSI beneficiaries. This adjustment impacts around 71 million Americans.
Takeaways: While lower than 2023’s 8.7% COLA, this increase aids individuals reliant on these benefits to counter inflation’s impact. Elder law attorneys should use this update to ensure their clients’ estate planning aligns with current economic conditions and goals. For individuals with disabilities and low-income seniors, special needs trusts or ABLE Accounts can be beneficial in maintaining SSI eligibility while covering additional expenses.
The post From The Internal Revenue Service’s (IRS’s) Release Of The 2024 Lifetime Exemption appeared first on morganlegalfl.com.
Current Developments: November 2023 Review
Recent times have seen a flurry of changes in estate planning, elder law, and business law. The Internal Revenue Service (IRS) has declared the 2024 exemption limits for lifetime and annual gifts, while the Social Security Administration has announced the 2024 cost-of-living adjustments. Moreover, a final rule has been set forth regarding the usage of FinCEN identifiers under the Corporate Transparency Act. To keep you informed and up-to-date, we present a comprehensive analysis of their potential impact on your legal practices in estate planning, elder law, and business law.
Estate Planning
Internal Revenue Service Announces 2024 Exemption Figures
Revenue Procedure 2023-34 (Dated: November 9, 2023)
On November 9, 2023, the IRS introduced Revenue Procedure 2023-34. This document outlines the annual inflation adjustments for tax provisions applicable to individual taxpayers for the 2024 returns. Key adjustments include:
| Adjustment | 2023 | 2024 |
|---|---|---|
| Estate, gift, and generation-skipping transfer taxes exemption amount | $12,920,000 | $13,610,000 |
| Annual gift exclusion amount | $17,000 | $18,000 |
| Gifts to non-U.S. citizen spouse (excluding future interest property gifts) | $175,000 | $185,000 |
Key Insights: These adjustments reflect the ongoing inflation trend. The raised basic exclusion amount permits individuals to transfer an additional $690,000 ($1,380,000 for married couples) without incurring transfer tax in 2024 compared to 2023. The raised annual gift exclusion, witnessing its third increase in as many years, signifies ongoing fiscal adjustments. Estate planning lawyers should guide clients to leverage these increased limits, especially considering the impending reduction of the exemption amount post-2025.
Elder Law and Special Needs Law
Social Security Administration’s 2024 Adjustments
The Social Security Administration has announced a 3.2% COLA for 2024, applicable to Social Security and SSI beneficiaries. This adjustment impacts around 71 million Americans.
Takeaways: While lower than 2023’s 8.7% COLA, this increase aids individuals reliant on these benefits to counter inflation’s impact. Elder law attorneys should use this update to ensure their clients’ estate planning aligns with current economic conditions and goals. For individuals with disabilities and low-income seniors, special needs trusts or ABLE Accounts can be beneficial in maintaining SSI eligibility while covering additional expenses.
The post From The Internal Revenue Service’s (IRS’s) Release Of The 2024 Lifetime Exemption appeared first on morganlegalfl.com.
