The IRS released Revenue Procedure 2021-45 which announces the increase in 2022 of the estate, gift and generation-skipping transfer tax applicable exclusion amounts from $11.7 million to $12.06 million. The applicable exclusion amounts currently remain scheduled to expire on December 31, 2025, which would result in a reduction in the exclusion amounts to $5 million (adjusted for inflation). However, there is always a possibility that new law will be passed that could adjust these exclusion amounts sooner.
In addition, in 2022, the gift tax annual exclusion amount for gifts to any person (other than gifts of future interests to trusts) will increase to $16,000, while the gift tax annual exclusion amount for gifts to a non-citizen spouse will increase to $164,000.
The New York basic exclusion amount will also increase in 2022 from $5.93 million to $6.11 million.
The Connecticut estate and gift tax applicable exclusion amount will increase from $7.1 million to $9.1 million in 2022. This amount remains scheduled to meet the federal estate and gift tax exclusion amount in 2023.