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Here's a quick summary of the new gift, estate, and inheritance changes that came along in 2022. Spoiler alert: very few people now have to pay these taxes.

1. The federal estate and gift tax exemption increased from $5,000,000 in 2017 to $10,000,000 in 2018, indexed to inflation. In 2024, that is $ 13.61 million. This higher federal exemption means that fewer people will be subject to the estate tax since only estates with assets that exceed that exemption are required to file a federal estate tax return. (Surviving spouses of decedents with estates less than this exemption may still decide to file an estate tax return to request portability, which is the ability to use their deceased spouse's unused exemption at their own death, but they are not required to do so.) Click here to find out more about when an estate tax return does, or doesn't, need to be filed.

2. Several states have increased their state estate tax exemptions, either because they were already indexed for inflation or because they changed their state laws, either way, this means that fewer residents of those states will be subject to estate tax.

  1. Connecticut allows the surviving spouse to use the deceased spouse's unused exemption, just like the feds do.
  2. Washington D.C. has set its exemption level to $4,000,000, indexed for inflation to $4,528,800 for 2023.
  3. Maryland has set its exemption level to $5,000,000.
  4. Vermont's exemption remains at $5,000,000
  5. Hawaii's exemption remains at $5,490,000.
  6. Illinois remains unchanged at $4,000,000
  7. Maine's exemption is indexed for inflation and is $6,410,000 for 2023
  8. Rhode Island's exemption is indexed for inflation ($1,733,264 million for 2023).
  9. Washington state's exemption has remained at $2.193,000 from 2018-2023).
  10. New York is increasing its estate tax exemption to $6,580,000.
  11. Minnesota exemption is $3 million. 
  12. Massachusetts and Oregon have an exemption of $1,000,000 per person.

 




Jurisdictional relevance: US

Legal Consumer - Warner Robins, GALaw. The content of this article pertains to all US states and counties.


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