IRS Announces Federal Estate & Gift Tax Adjustments for 2016
Dec 21, 2015
On October 21, 2015, the Internal Revenue Service announced that the federal estate tax exemption for 2016 has been increased $20,000 per person, from $5.43 million in 2015 to $5.45 million in 2016. The annual gift tax exclusion will remain the same in 2016, at $14,000 per person.
While the federal estate tax exclusion, at $5.45 million in 2016, may not affect your estate, keep in mind that Pennsylvania imposes an inheritance tax on Pennsylvania residents. With the new year approaching, this may be a good time to revisit your own estate plan and make sure your estate planning documents are up to date and in order.
For information on estate planning, please contact us at 215-572-8111.
Source: IRS Rev Proc 2015-52, October 21, 2015, www.irs.gov