2018 Will Bring Increases to Annual Exclusion, Gift and Estate Tax ExemptionsThe IRS has announced that the gift tax annual exclusion will increase from $14,000 to $15,000 in 2018, which will allow donors to give up to $15,000 ($30,000 combined for married couples) per donee each year without incurring gift tax or using the lifetime gift and estate tax exemption. In addition, the lifetime gift and estate tax exemption will increase from $5.49 million in 2017 to $5.60 million ($11.2 million combined for married couples) in 2018. Finally, the generation-skipping transfer tax exemption will similarly increase to $5.6 million. With respect to annual exclusion gifts to non-U.S.-citizen spouses, the amount will increase to $152,000 in 2018, up from the current $149,000. These recently announced increases are the result of inflation adjustments. To determine the strategies available to you to take advantage of these increased exemption amounts, please contact one of the members of our Family Business Advocates team.