The IRS recently released Revenue Procedure 2014-61, which announced inflation adjustments to the applicable exclusion amount beginning in 2015.  For an estate of any decedent dying during calendar year 2015, the applicable exclusion is increased from $5.34 million to $5.43 million.  This change increases not only the applicable exclusion amount available at death, but also a taxpayer’s lifetime gift applicable exclusion amount and generation skipping transfer exclusion amount.  This means a married couple with proper planning could transfer $10.86 million estate, gift, and GST tax free to their families in 2015.

The estate, gift, and GST tax rate remains unchanged at 40% and the gift tax annual exclusion stays at $14,000.