Maximize Your Legacy in 2024: Navigating Gift Tax & Estate Tax Increases and Irrevocable Trust Strategies with Omni 360 Advisors

As we move through January 2024, it’s crucial to strategize your gifting plans, particularly in light of the updated gift and estate tax basic exclusion amount (BEA). The BEA for 2024 has risen to $13.61 million, an increase from 2023’s $12.92 million. This enhancement allows married couples to gift up to $27.22 million without incurring gift tax liability. Additionally, the annual exclusion amount has also increased to $18,000 per donor. It’s important to remember that specific types of gifts, like those made directly to educational or medical institutions, are exempt from these limits.

This change in the BEA offers a significant opportunity, especially considering that the increased BEA is set to revert to pre–Tax Cuts and Jobs Act levels by 2026. This potential reduction highlights the importance of proactive estate planning.  In particular, it’s important to consider the use of irrevocable trusts & other vehicles in estate planning. Gifting to an irrevocable trust can be an effective way to utilize both the increased BEA and annual exclusion amounts, while also offering potential benefits like asset protection and tax advantages. These trusts can be tailored to suit various financial goals and family situations.

At Omni 360 Advisors, our team of estate planning attorneys, accountants, and financial advisors is well-equipped to guide you through the intricacies of setting up irrevocable trusts. We’ll help you understand how these trusts can fit into your overall estate plan, ensuring that your assets are managed and transferred according to your wishes. Remember, with the impending changes to the BEA in 2026, now is a critical time to take action and make the most of the current tax benefits.