The purpose of this Newsletter is to set out the important estate planning related tax exemption figures for 2027, as updated for inflation.
The Basic Exclusion Amount (“BEA”) (also known as the Unified Gift and Estate Tax Exclusion Amount) for 2027 has been increased to $15,480,000, per person, which is an increase of $480,000 over the 2026 figure.
The Generation Skipping Transfer (“GST”) tax exemption uses the same figures as the BEA amount, although this has not always been the case. As a result, the GST tax exemption amount for 2027 has also increased to $15,480,000 million per person, which is an increase of $480,000 over the 2026 figure.
The Gift tax annual exclusion permits you to make tax free gifts without having any effect on your available BEA (and possibly, no effect on your available GST tax exemption amount). The gift tax annual exclusion is $10,000, indexed for inflation and moves up only in increments of $1,000. For 2027, the Gift tax annual exclusion amount increases by $1,000 to $20,000 per done.
The Gift tax annual exclusion for gifts to a non-USA citizen spouse is different than the normal Gift tax annual exclusion since gifts to a non-USA citizen spouse do not normally qualify for the unlimited marital deduction from the Gift, Estate, and GST taxes. As a result, the annual Gift tax annual exclusion is important in moving assets between spouses, when at least one of them is a non-USA citizen. The Gift tax annual exclusion for gifts to a non-USA citizen spouse is $100,000, indexed for inflation. For 2027, this exemption amount increases by $7,000, from $194,000 to $201,000.
For more information on the updated tax figures, please see Rev. Proc. 2026-35 at https://www.irs.gov/pub/irs-drop/rp-26-35.pdf.
If you would like to discuss estate and tax planning in your particular situation, please call us at (678) 720-0750, ext. 1 or e-mail us at info@morganfirmlaw.com
to schedule a consultation. We can discuss your situation, answer your questions, and determine what planning might be the best fit for you. We look forward to meeting with you.
