IRS Announces Inflation Adjusted Figures

On November 29, 2021, the IRS issued Revenue Procedure 2021-45, providing inflation-adjustments for various provisions of the Internal Revenue Code.  Those affecting trust and estate planning and administration are as follows:

• The estate and gift tax basic exclusion amount is $12,060,000 (increased from $11,700,000)
• The generation-skipping transfer tax exemption is $12,060,000 (increased from $11,700,000)
• The annual exclusion for gift tax is $16,000 (increased from $15,000)
• The income tax rates for trusts and estates are:
  • 10% for income not over $2,750
  • 24% for income more than $2,750 but not over $9,850
  • 35% for income over $9,850 but not over $13,450
  • 37% for income in excess of $13,450