January 06, 2022

Changes to 2022 Federal Transfer Tax Exemptions

1 min

Despite the various proposals to lower federal transfer tax exemptions and increase the tax rates, none of them were actually enacted in 2021. As a result, the estate, gift, and GST tax exemptions have instead increased for inflation in 2022, giving people a second chance on locking in the advantageous rates and exemptions before they revert to $5 million in 2026 (adjusted for inflation and assuming the tax law does not change before then).

The following chart shows the current transfer tax exemptions in comparison to last year:




Estate Tax Exemption



GST Tax Exemption



Lifetime Gift Tax Exemption



Annual Gift Tax Exclusion



We highly recommend you consider making additional lifetime gifts to utilize the increased 2022 exemptions. Assuming you used all of your $11.7 million exemption, you can gift an additional $360,000 ($720,000 for married couples) tax free in 2022.

If you are interested in making a gift this year, please contact us to discuss your options and review your estate plan.