Every year, the IRS announces new limits on the estate tax exemption for the upcoming year. It is the amount of money people can give away without having to pay a federal estate tax. The number is primarily for rich people who have large amounts of money.
The federal estate tax exemption has been raised from $12,060,000 to $12,920,000 for 2023. It means that a millionaire (or billionaire) can give away this amount, and a couple could give away $25.84 million without having to pay any taxes on the money.
The $12.92 million exemption is a lifetime gift tax exemption. It is the maximum amount that you can give away over your lifetime….