2008 ESTATE AND GIFT AMOUNTS ADJUSTED

The IRS recently announced in Rev. Proc. 2007-66 that the annual gift tax exclusion will remain at $12,000 per donee ($24,000 for couples electing to split their gifts) for gifts made in 2008.
Other adjustments that have been impacted by inflation in the gift and estate tax area include the following:

  • the annual exclusion for gifts to a non-citizen spouse have been increased from $125,000 to $128,000
  • the Generation Skipping Tax exemption amount remains at $2,000,000 (the same as the estate tax exclusion amount) and is no longer adjusted for inflation.