Legal Update: November 2023
November 2023 has brought a wave of legal developments in the fields of estate planning, elder law, and business law. From the IRS’s new guidelines for 2024 to Social Security adjustments and modifications in the Corporate Transparency Act, legal practitioners must stay up-to-date with the latest changes. To help you do just that, we’ve compiled the most important updates below.
Estate Planning
The IRS has revised the tax provisions for 2024, offering individuals and couples greater flexibility in tax-free transfers. Significant changes include:
| Exemption/Gift Amount | Amount |
|---|---|
| Estate and Gift Tax Exemption | $13,610,000 |
| Annual Gift Exclusion | $18,000 |
| Gifts to Non-Citizen Spouse | Exclude the first $185,000 from taxable gifts |
The IRS has made it easier for individuals and couples to transfer wealth tax-free, with the estate and gift tax exemption increasing to $13,610,000 and the annual gift exclusion increasing to $18,000. Additionally, gifts to non-citizen spouses are now excluded from taxable gifts up to $185,000.
Massachusetts has also increased its estate tax exemption to $2 million, effective retroactively from January 1, 2023. This change reduces the tax burden on estates just above the previous $1 million threshold, and estate representatives may seek refunds or extensions based on this new exemption amount.
California has enacted the Uniform Directed Trust Act, defining the roles of trust directors and trustees in trust administration. This act provides a legal framework for using trust directors, offering more flexibility in trust management.
Elder Law and Special Needs Law
The Social Security Administration announced a 3.2% COLA for 2024, affecting both Social Security and SSI beneficiaries. Though smaller than in 2023, this adjustment will assist those on fixed incomes to counteract inflation.
Business Law
The Treasury Department has issued a final rule for the use of FinCEN identifiers, simplifying reporting for business entities under the Corporate Transparency Act. This eases the administrative burden for businesses required to file multiple reports.
The IRS has introduced a withdrawal process for employers who have filed for the Employee Retention Credit under duress, allowing them to avoid penalties for ineligible claims. This offers relief to employers who filed ineligible claims due to external pressure.
California has passed several laws enhancing employee rights, including increased paid sick leave and regulations against noncompete agreements. Employers must adapt to these changes, ensuring compliance and providing necessary notices to employees.
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Uncovering The 2024 Lifetime Exemption Amount: What You Need To Know From The IRS appeared first on MiamiLawyerNearMe.com.
For more on our Florida practice, see our overview of probate and estate administration in Florida. Morgan Legal Group's affiliated New York office also handles New York probate and estate administration.
