Federal Estate Tax and Gift Tax Exemptions for 2021 Have Been Determined

The IRS has decided to keep the annual gift tax exclusion the same for 2021, allowing individuals to gift up to $15,000 to as many individuals as desired each year.

The federal estate tax exemption will increase from $11.58 million to $11.7 million per person for 2021, meaning a married couple can safeguard up to $23.4 million dollars with proper estate planning.

According to An Updated Analysis of the Former Vice President Biden’s Tax Proposals by the Tax Policy Center, Biden’s tax plan would lower the estate tax exemption to $3.5 million ($7 million for married couples) and increase the estate tax rate from 40% to 45%.

It’s uncertain whether these changes will go into effect or not. If the Senate races in Georgia do not see the Democrats reach a majority, it’s even more unlikely.